Minimum notice periods at DNV GL are typically 4-8 weeks. Notice periods vary by country, often guided by national legislation and additional provisions, in some additions to collective agreements. However, the notice period and provisions for consultation and negotiations are normally not specified in collective agreements.
Approximately 44% of all DNV GL employees are covered by collective bargaining agreements.
Whether formal agreements (either local or global) with trade unions cover health and safety.
Most collective agreements entered into cover elements related to Health and Safety e.g. overtime hours and education of employees as well as company focus related to HSE topics. Since DNV GL has comprehensive internal instructions related to HSE and some of these are even further detailed in specific Business areas, there has not been a need to enter a lot of the HSE topics in local collective agreements.
The annual salary review & remuneration process is common for all employees including management and documented in the DNV GL Management System. The review procedure for the members of the Executive Committee differs slightly as a review is conducted and recommendations made by the Compensation Committee before being concluded and final decision on remuneration of the Group CEO is taken by the Board of Directors. The collection and analysis of relevant market data is very similar for all employees and management and external remuneration consultants are used at all levels; e.g. for the 15 largest countries in DNV GL through access to country specific salary and benefit databases with thousands of incumbents, where there is no relationship whatsoever between the remuneration consultant /data collector and the management. When conducting ad-hoc “mapping” of senior executives into relevant external salary levels/grades, e.g. after a large acquisition or merger, remuneration consultants are being used, but there are no on-going ties between the consultant and the management.
The annual process can in short be described as the following:
- The Annual salary frames shall be approved at Divisional level by the relevant Director of Division/Head of Independent Business Unit.
- Any additional mid-year salary frame adjustments shall be approved by the Group CEO.
- A salary frame proposal shall be based on the following criteria:
- Total compensation level in the market
- Salary increment in the relevant external market
- Actual versus forecasted wage position movement after last year’s salary review
- Financial sustainability
- Turnover level, ability to recruit
- Consumer price index (CPI) development
- Extraordinary elements affecting the local situation
All references to market data, competitor data, and statistics such as CPI development shall be documented. Benchmarking of DNV GL Total Compensation level in relevant markets should be performed as input to the salary frame. No vote on remuneration policies is applicable.
Detailed information about pension costs, plan assets and defined benefit pension liabilities is available in the 2014 financial statement note 7 in the annual report (LINK TO ANNUAL REPORT). Per 31 December 2013 the “Pension liabilities recorded in the balance sheet (meaning not prepaid pension)” was NOK 1952.4 mill.
These “none prepaid” pension liabilities are reflected in the balance sheet according to commonly accepted International Accounting standards (specifically IAS-19). DNV GL follows the national regulations/policies related to the required funding and it is in particular in Germany and to some extent in countries with statutory End of Service plans where the liabilities are registered on the balance sheet. This is according to the normal and well accepted accounting procedure of these countries.
Most Defined Benefit (DB) plans do not pay in based on percent and is becoming less relevant as all major DB plans in DNV GL are closed for new members. For the countries with significant DB plans, we estimate the following contributions in percentage of salary:
Norway: approx. 20% employer contribution and 0% from employee.
UK: 15%-20% from employer and 3-5% from employees. Contributions/accruals taxed on individual basis if exceeding limited stated through national legislation.
Netherland: varies by age in traditional DB scheme. Contributions/accruals taxed on individual basis if exceeding limited stated through national legislation.
Germany: The contribution to Defined Benefit plans estimated as a percentage of base salary varies depending on plan and age. No employee contribution.
Compensation guidelines: Executive Committee
The compensation guidelines for the members of the Executive Committee support DNV GL’s vision of being a global organization with a long-term perspective. The main compensation elements are focused around a market based salary, a bonus scheme with a retention element and a few standard employee benefits in line with the local markets.
In DNV GL there is no difference in retirement benefits paid from the company based on role. The Group CEO and executive management team participate in the standard pension and insurance schemes applicable to the employees in Norway, United Kingdom, Germany and Italy respectively. The legacy DNV members of the Executive Committee (except Group CEO) have standard employment contracts and standard terms and conditions regarding notice period and severance pay. Being partly owned by a foundation, DNV GL Group does not offer share option programmes.
Legacy DNV has a bonus scheme with a retention component for all employees beyond a given salary group level. The bonus is based on a combination of Business Area and Group EBITA results and target varies by salary grade and performance assessment. Target bonus for the Executive Committee is 25 % and the maximum value is at 50% of base salary. The earned bonus is divided in three parts and the first part is paid the following year and thereafter another third the following two years. The pay-outs are forfeited if the executive resigns.
The Legacy GL members of the Executive Committee have individual compensation agreements defined in their employment contracts. The total compensation includes a pensionable fixed salary, non-pensionable fixed salary as well as a variable bonus part.
There is no performance-based or equity based pay for the executive members in DNV GL, nor any deferred or vested shares, sign-on bonuses or recruitment incentive payments or clawbacks.
In DNV GL managers should not only be capable of creating a budget and deliver solid financial results, but also define and execute strategy and tactical plans, and lead their people in living our values and fulfilling our purpose of protecting life, property and the environment. In order to further develop the leadership necessary for DNV GL’s success, we must have clear leadership expectations for our managers, measure our managers on their overall performance, including but not limited to financial performance, and give managers the support, feedback, training, and guidance they need to meet these expectations.
The expectations to leaders are the core of all activities related to leadership in DNV GL and involves among other things respect and care, innovation and focus on quality and professionalism. They are used in the managing individual performance process (which in turn is linked to compensation), goal setting and coaching. They are also used as a primary reference point when identifying talent, selecting candidates for senior positions and for general succession planning.
The Chair of the highest governance body is not also an executive officer.
In order to ensure comparable data, the numbers in this section are based on:
- Employees who have completed the harmonization of compensation and benefits and as a result has a defined role in our career model.
- Employees working full time.
- Employees paid in the local currency.