For a pension manager of public funds it is obvious that employee remuneration levels must be reasonable, justifiable and definable. AP4 endeavors to ensure that remuneration is in line with the market and enables the Fund to attract and keep skilled staff. AP4 shall not be a wage leader.

The Board bears ultimate responsibility for remuneration matters being dealt with responsibly, sensibly and transparently. Annually, the Board determines principles regarding remuneration and other employment terms. The Board also ensures compliance with the Government’s guidelines regarding terms of employment for senior management. The Board monitors compliance with the remuneration principles with the help of external consultants.

The Board has appointed three of its members to the remuneration committee. The committee’s task is to advise the Board and prepare materials regarding compensation for the CEO and Senior Executives. The Remuneration Committee also prepares materials relating to AP4’s principles for remuneration and other terms of employment for all employees.

Total remuneration for AP4 employees consists of fixed salary, incentive-based remuneration, pension allocation and other benefits. The CEO, Senior Management, Head of Compliance and Head of Risk Control do not receive incentive-based remuneration.

For other employees, is payable to a maximum of two months salary, when clear and measurable goals have been achieved. Incentive-based remuneration is based on group-oriented quantitative goals and the quantitative contribution of the individual employee measured over a rolling three-year period. Incentive-based remuneration is only payable if AP4’s total earnings for the financial year are positive.

Other benefits constitute a very limited value and are offered to all employees. Examples include health insurance, group insurance and fitness contributions. AP4 also has four parking spaces that employees can use whereupon they are taxed on the benefit

Read more under the heading Remuneration at AP4 or in Note 6.