Norwegian oil giant, Statoil said Eldar Sætre ill continue as CEO after he turns 62 in February 2018. Eldar Sætre will thus not use his contractual right to retire at the age of 62.
“It has been a wish from the board of Statoil that Eldar Sætre continues as CEO. As CEO, Eldar has successfully implemented important changes within Statoil. He has led the company through a challenging period for the industry, making Statoil a stronger company. He is the right person to continue developing Statoil as a broad energy major, with a clear strategy for safe operations, high value creation and a low carbon future”, says the chair of Statoil’s board of directors, Jon Erik Reinhardsen.
Sætre was appointed chief executive on 4 February 2015, after being acting CEO since 2014.
“I am proud of Statoil’s achievements, and believe we are well equipped for the future. We have high project activity and are further developing the Norwegian continental shelf. We are strengthening our position as an operator in attractive areas outside Norway, and have started to build a significant portfolio in renewable energy.
He added that “Statoil has delivered competitive returns, and is well positioned to create substantial shareholder value also in the future. I look forward to continuing to lead this company as we continue our journey,” says CEO Eldar Sætre.
Under his individual pension agreement Sætre had the right to retire at the age of 62, after just three years as chief executive. At that time, an element of his fixed pay was therefore excluded from his pensionable earnings. Now that there is agreement to a longer timeframe, the board has decided to revert to the original provision of pension being calculated on total fixed pay. The fixed pay element, which today represents around NOK 2.4 million, will thus be included in the pension-qualifying income. Sætre will at the latest retire when he turns 67, but he retains the right to retire at an earlier stage.
Statoil is the largest company in Norway, measured by revenues as well as market capitalisation. Statoil is also the largest company in the Nordic countries measured by revenue, and the second largest measured by market capitalisation. The Statoil board has for some time reviewed the CEO’s remuneration package compared to the market. Subsequently, the board has increased the CEO’s fixed annual pay to NOK 8.767 million, effective from 1 September 2017.
“Statoil should have competitive executive compensation in the markets in which we operate, but not be market leading. On this basis and after an evaluation of performance, the board has adjusted the remuneration package for the chief executive. It’s a pleasure to announce that Eldar Sætre continues as chief executive officer,” says chairman of the board of directors, Jon Erik Reinhardsen.