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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 2021.
Summary of pension costs
(NOK million) 2021 2020
Pension costs defined contribution plans and other severance schemes 94 91
Pension costs defined benefit plans 3 3
Total pension costs recognised in the income statement, ref. Note 2.2 98 94
Actuarial gain / loss (-) recognised in other comprehensive income (net of tax) -10 -3
The defined benefit schemes were replaced by defined contribution plans in 2004. Net pension obligations as of
31 December 2021 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).
Actuarial assumptions
2021 2020
Discount rate in % 1.1 1.0
Expected return in % 2.9 1.0
Wage adjustment in % 2.5-3.5 2.00
Inflation / increase in social security basic amount (G) in % 2.3-2.5 1.75
Pension adjustment in % 1.2-2.0 0.0-2.0
Schemes with net pension obligation
Net pension obligations
(NOK million) 2021 2020
Balance as of 1 January -85 -80
Recognised in the income statement -3 -4
Other movements -10 -1
Net pension obligation defined benefit plans -98 -85
Other severance schemes -104 -85
Balance as of 31 December -201 -169
5.3 REMUNERATIONS
Remuneration of the President & CEO
(NOK thousand) Ordinary salary Bonus Benefits in kind Pension cost Total
President & CEO 6 624 2 828 376 4 109 13 936
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) 2021 2020
Board of Directors 2 730 2 840
Corporate Assembly 180 195
Total 2 910 3 035
Shares controlled by members of the Board of Directors and Jotun A/S Management are specified in Note 5.8 in
the consolidated financial statements.
External auditor remuneration
(NOK thousand) 2021 2020
Statutory audit 3 036 4 038
Other attestation services 25 80
Tax services 550 833
Other services 23 -
Total 3 634 4 951
Jotun A/S
62 I Jotun Annual Report 2021