Norway’s Government Embroiled in Clash Over CEO Salaries

Heidi Taksdal Skjeseth

12 June 2024 at 10:34 am·1-min read

(Bloomberg) -- Norway’s government held onto its stance on limiting executive pay in state-owned companies after some key firms refused caps.

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The effort is intended to minimize the growing income gap in the traditionally egalitarian nation, as outlined in a report on state ownership that was presented in Oslo Tuesday. At the event, Trade and Industry Minister Cecilie Myrseth reiterated calls for moderation in remuneration.

But arms producers Kongsberg Gruppen ASA and Nammo AS recently rejected the government’s policy, with Kongsberg Chief Executive Officer Eivind Reiten saying that the company has “no plans to make adjustments to the guidelines” and calling it “the wrong way to go,” according to E24.

In contrast, Equinor ASA, Telenor ASA and DNB Bank ASA have partly followed the state’s expectations. The state has holdings in 69 companies.

Still, there are few consequences for companies that refuse to comply with the government guidelines. Executive pay is set by companies’ boards of directors, Myrseth told reporters, adding that “the state can express its opinions, which we do, in the annual general meeting.”

--With assistance from Stephen Treloar.