05 Mar 2003

Norwegian Evening news with fiction about Jan Reinås' compensation

The Norwegian broadcaster NRK1 had as one of its headline reports yesterday evening a story about CEO Jan Reinås' receiving a salary increase of NOK 800,000 last year. This number is incorrect. In 2002, Jan Reinås had a base salary of NOK 3,070,000 compared with NOK 2,950,000 in 2001, corresponding to an increase of 4% (NOK 120,000).
What NRK1 has presented is pure fiction. Jan Reinås has clearly stated that he did not want a salary increase last year. However, the Board decided to grant him an increase in-line with the general wage increase for employees of Norske Skog. Out of principle, Jan Reinås decided in 2002 to step down from the Board of Norske Skog and thereby gave up his NOK 140,000 Director fee. In reality, Jan Reinås has therefore had his compensation reduced by NOK 20,000.
Jan Reinås has a bonus agreement which resulted in payment of NOK 693,000 in 2002, based on results achieved in the previous fiscal year. The corresponding payment for 2001 was NOK 574,000. In 2003, he will not receive a bonus due to the weak results in fiscal 2002.

Oxenøen, March 5, 2003

Lars Wilhelm Grøholt
Chairman, Norske Skog