Samhällsbyggnadsbolaget i Norden AB

At the Samhällsbyggnadsbolaget i Norden AB general meeting on 27 April 2022, Folketrygdfondet, manager of the Government Pension Fund Norway, voted against items 14.01.02 and 16 for the following reasons:

Item 14.0 1.0 2: Election of CEO Ilija Batljan to the board of directors 
Folketrygdfondet opposes the election of the CEO to the board of directors as a matter of principle. One of the board’s main tasks is the supervision of company management, which includes appointment and dismissal of the CEO. Folketrygdfondet considers that board members can only supervise company management adequately if they are not recruited from among management. For this reason, we voted against item 14.01.02. 

Item 16: Resolution on approval of the remuneration report 
Folketrygdfondet is positive to share ownership among executives and board members to secure aligned incentives with shareholders, as well as good corporate governance and value creation over the long term. We expect boards to develop plans that are clear and simple, include a maximum limit, and a scope that is not unreasonable. The SBB remuneration report is based on a program that does not include individual limits for share-based remuneration. Folketrygdfondet is therefore of the view that the program's scope can allow for an excessive transfer of value from shareholders to company management.