Compensation Schemes Disclosure Statement

(2018-04-10)

Introduction
The board of directors of Smedvig Asset Allocation AS has, in accordance with the Norwegian Securities Services Act, § 9-11, subsection 7, and relevant Regulations, approved guidelines and a framework and limits for the remuneration of senior management.

Remuneration Policy

Total remuneration to senior management shall be competitive, but not market leading, in relation to similar positions within similar companies and the Smedvig Group.

Total remuneration to senior management may include:
– Base salary
– Defined contribution pension scheme
– Insurance plan
– Company car or car allowance
– Variable bonus.

Variable bonus is as a principle tied to ownership of shares in the company or parent company. The shareholders are entitled to receive a Performance Fee based on the return created for investors above a certain minimum acceptable rate of return, MARR (hurdle rate). The hurdle rate will accumulate on a compounded basis annually in arrears. The Performance Fee is also subject to a High Watermark. All performance fees are reinvested in the funds managed on behalf of the customer and are vested for a minimum of three years. The chairman of the board of directors may – within set guidelines and at his discretion – pay a bonus equal to a maximum of 20 % of the base salary. Any discretionary bonuses shall be paid 50 % in cash and 50 % in contingent capital, which are vested for a period up to three years. Contingent capital shall be reduced if company results or investment performance so require.

Senior Management
As of January 1, 2017 the CEO is considered to be senior management.

Current Remuneration to Senior Management
The remuneration to senior management in 2017 is:

CEO
– NOK 1,820,000.- (base salary)
– Defined contribution pension scheme (5 % of salary between 1G and 6G and 8 % between 7G and 12G.)
– Insurance plan (life, disability, medical treatment and travel)
– Company car
– 2.5 % of any performance fee payable in accordance with current agreements.