Connect with us

Norway’s Sovereign Wealth Fund Issues Stance on Executive Pay

Published

on

The world’s largest sovereign wealth fund is taking a principled stance on corporate CEO pay, arguing the current model adopted by most companies is flawed. Norges Bank Investment Management (NBIM), the manager of Norway’s Government Pension Fund Global (GPFG) crafted a policy paper on CEO remuneration.

Yngve Slyngstad

Yngve Slyngstad

Like the corporate activist pension California Public Employees’ Retirement System (CalPERS), NBIM has voiced its concerns on a wide variety of issues such as environmental matters across corporate boards globally. NBIM is also a shareholder in most major companies. For example, at the end of 2016, Norway’s GPFG owned 5.2% of equity in BlackRock Inc. At the end of 2016, the Norwegian sovereign investor was invested in 8,895 companies, having an ownership stake of more than 2% in 1,158 companies, according to its annual report.

War Against Long-Term Incentive Plans

With regard to listed companies, CEO remuneration is a touchy topic. NBIM wants to realign the interests of the CEO and its shareholders, by altering the current pay model for a more simple and transparent compensation scheme. The wealth fund argues that a good number of long-term incentive schemes are ineffective, flawed and opaque. In addition, in a shift in thinking, NBIM desires listed companies to force their CEOs to own a substantial ownership stake in the company. Ideally, the wealth fund wants the CEO to own stock in the company for 10 years, or 5 years at a minimum. NBIM is generally more concerned about pay structure versus pay levels. The wealth fund hopes that companies enact and reveal pay ceilings for the following year.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

ADIA Seeks to Sell KIC Headquarters

Published

on

The Abu Dhabi Investment Authority (ADIA) is seeking to sell the building that houses the headquarters of the Korea Investment Corporation (KIC). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

BMO and OTPP Test Blockchain Canadian Dollar Debt Deal

Published

on

The Bank of Montreal (BMO) and the Ontario Teachers’ Pension Plan (OTPP) participated in a landmark blockchain Canadian-dollar debt transaction. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Just Group Acquires Corinthian Pension Consulting

Published

on

Just Group plc acquired a 75% ownership stake in the holding company of Corinthian Pension Consulting Limited (Corinthian Pension Consulting). Operating in the institutional world for over 12 years, Corinthian Pension Consulting provides advisory services to defined-benefit pension scheme trustees and scheme sponsors undertaking bulk scheme exercises. The remaining 25% will be retained by current shareholders of Corinthian Pension Consulting. Robert MacGregor will continue to lead Corinthian Pension Consulting, as its Chief Executive Officer. Furthermore, Corinthian Benefits Consulting Limited and Corinthian Affinity Solutions Limited will continue to operate as before, becoming part of a newly formed holding company, Corinthian Group Holdings Limited.

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.