General Meeting of MPC Container Ships ASA

At the MPC Container Ships ASA general meeting 27 April 2022, Folketrygdfondet will vote against items 5 and 6 for the following reasons:

Item 5. Guidelines for executive remuneration

Folketrygdfondet takes a positive view of incentive programs that are targeted and performance-based. Incentive programs should be connected to personal targets, company targets, and targets to secure value creation for shareholders over the long term. We expect that the board structures programs in a manner that is simple and clear, includes a maximum cap, and a scope that is not unreasonable. As the description of the MPC Container Ships remuneration program omits both an overall cap as well as central details about the program, Folketrygdfondet is of the view that the proposal can therefore involve an excessive transfer of value from the shareholders to company employees.

Item 6. Advisory vote on executive remuneration report

The report is based on a program for executive remuneration that lacks a cap and omits a description of how the incentive structure contributes to value creation for shareholders over time. This is inconsistent with Folketrygdfondet’s expectations for companies’ incentive programs. For this reason, Folketrygdfondet will vote against the report.