5.2 PENSIONS AND OTHER LONG-TERM EMPLOYEE BENEFITS
Jotun A/S has both defined contribution and defined benefit pension plans. The majority of the company’s
pension plans are defined contribution plans, whereby the company’s obligation is limited to annual contributions
to the employees’ pension plans. Costs related to the defined benefit plans account for less than five per cent of
total pension costs in 2019.
Summary of pension costs
(NOK million) 2020 2019
Pension costs defined contribution plans and other severance schemes 91 88
Pension costs defined benefit plans 3 4
Total pension costs recognised in the income statement, ref. Note 2.2 94 92
Actuarial gain / loss (-) recognised in other comprehensive income (net of tax) -3 4
The defined benefit schemes were replaced by defined contribution plans in 2004. Net pension obligations as of
31 December 2020 are primarily related to previous early retirement schemes for Jotun A/S’s senior executives.
Other severance schemes are obligations related to operating pension schemes for employees with an annual
basic salary and pension base exceeding 12 times the basic amount (G).
Funded schemes were terminated in 2020.
Actuarial assumptions
2020 2019
Discount rate in % 1.0 1.3
Expected return in % 1.0 1.3
Wage adjustment in % 2.0 2.25
Inflation / increase in social security basic amount (G) in % 1.75 2.0
Pension adjustment in % 0.0-2.0 0.7-2.25
Schemes with net pension obligation
Net pension obligations
(NOK million) 2020 2019
Balance as of 1 January -80 -78
Recognised in the income statement -4 -4
Other movements -1 4
Net pension obligation defined benefit plans -85 -80
Other severance schemes -85 -72
Balance as of 31 December -169 -152
5.3 REMUNERATIONS
Remuneration of the President & CEO
(NOK thousand) Ordinary salary Bonus Benefits in kind Pension cost Total
President & CEO 5 630 2 586 207 2 573 10 996
The President & CEO is part of a pension scheme that includes a mutual opportunity to discontinue employment in
whole or in part up to five years earlier than a stipulated retirement age of 67 years.
Jotun A/S has no obligation to give the President & CEO or the Chairman of the Board special remuneration upon
discontinuance or change of employment or office. Should the President & CEO’s employment discontinue, his
contract has a clause stipulating that a one-year “competition quarantine” may be imposed with compensation.
The President & CEO has a notice period of six months.
Jotun A/S has not given any loans or guarantees to the President & CEO, the Chairman of the Board, or to any
shareholders or members of Jotun A/S Management, the Board of Directors or Corporate Assembly.
Remuneration of the Board of Directors and Corporate Assembly
(NOK thousand) 31.12.2020 31.12.2019
Board of Directors 2 840 3 384
Corporate Assembly 195 173
Total 3 035 3 557
Shares controlled by members of the Board of Directors and Jotun A/S Management are specified in Note 5.8 in
the consolidated financial statement.
External auditor remuneration
(NOK thousand) 31.12.2020 31.12.2019
Statutory audit 4 038 3 103
Other attestation services 110 740
Tax services 803 48
Total 4 951 3 890
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Jotun A/S
62 I Jotun Annual Report 2020