25 of the country’s most paid top executives received over 200 million kroner in bonus last year, much more than their total payment of just over NOK 130 million.
Many top executives increased their payments sharply last year after receiving more as bonus than the amount of salary they get from the companies they lead. Out of the 25 leaders, 20 had a bigger bonus than salary, writes Dagens Næringsliv.
It is clear from the newspaper’s review of Norwegian companies’ payment of salaries and bonuses, including stock options to the best paid daily managers in Norway.
Professor Kjell G. Salvanes at Norway’s business school has a clear impression that the bonus festival has gained momentum in recent years. He believes the main reason is tougher battle for the talents.
“Do you have to secure the very best top managers – the” superstars “- you have to offer high wages. And then it’s easy to come up with a lucrative bonus scheme on top of the fixed salary. Bonus thus becomes an important recruitment element, he says.
He thinks the bonus festival will continue, but it does not seem obvious that good bonuses necessarily make managers perform better.
Source: NRK / Norway Today