2.2 PAYROLL EXPENSES
Payroll expenses are the total disbursements relating to remuneration of personnel employed by the Group. These
expenses comprise direct salaries and holiday pay, bonuses, pension costs and public taxes/charges relating to the
employment of personnel.
(NOK million) 2021 2020
Wages including bonuses 2 718 2 669
Social costs 366 317
Pension costs, ref. Note 5.2 192 177
Other personnel costs 113 115
Total 3 389 3 277
Average full-time equivalent employees 7 444 7 307
The Group has a system of annual bonuses that applies to senior management and is limited to a maximum of
20 per cent of annual basic salary. Further, all members of Group Management, including the President & CEO,
are part of an annual profit-dependent bonus system limited upwards to 50 per cent of annual basic salary.
The Group’s pension plans are primarily defined contribution plans. For further information see Note 5.2.
For further information regarding remuneration to the President & CEO and Board of Directors see Note 5.3.
Payroll expenses
In % of revenue from contracts with customers
2 719 2 830
17 % 16 % 16 % 16 % 15 %
2017
3 128 3 277 3 389
2018 2019 2020 2021
2.3 OTHER OPERATING EXPENSES
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Other operating expenses comprise all operating expenses that are not related to cost of goods sold, payroll
expenses and capital costs such as depreciation, amortisation and impairment. The main items of other operating
expenses have been grouped in the table below.
(NOK million) 2021 2020
Manufacturing 464 452
Warehouse 217 209
Transportation 629 555
Sales and marketing 1 104 1 126
Research and Development 309 260
General and administrative 566 611
Other 132 370
Total 3 421 3 584
Manufacturing costs include change in cost of conversion related to finished goods.
Research and Development consists of costs from projects in a research phase and development costs related
to cancelled projects. Total Research and Development costs including payroll expenses are NOK 576 million
(2020: NOK 521 million) of which NOK 37 million has been capitalised as intangible assets specified in Note 3.2.
Other consists mainly of product liability claims, losses on accounts receivable and technical service. See Note 3.5
and 3.7 for further details.
Other operating expenses
In % of revenue from contracts with customers
2017
3 421
3 584
3 409 3 449 3 297
2018 2019 2020 2021
21 %
20 %
18 % 17 %
15 %
Jotun Group
Jotun Annual Report 2021 I 23