AXACTOR ASA Remuneration report
Remuneration report
Group results
2021 was a challenging year for Axactor, its employees, customers and stakeholders, due to impact of the Covid-19 pandemic. Axactor continue to focus on the strategy to become the industry benchmark in the debt collection industry.
Gross revenue increased with EUR 19.3 millions from 2020.
EBITDA was reduced with EUR 8.3 millions from 2020.
Net loss for the period was EUR 46 million.
Board of directors
The annualized fixed fees remained unchanged from 2020 for the board of directors. The change of total actual remuneration at an individual level in 2021 is due to pro-rating based on time served in the board compared to last year, or additional committee responsibilities that the individual member has taken on during the reporting year. Further information of the remuneration of the board is detailed in the section 'Remuneration - board of directors'.
Remuneration committee (RC) engagement
Return on equity excluding non-controlling interest for 2021 was -8,5%.
Since Axactor was founded in 2015, gross revenue has had a steady growth until the Covid-19 pandemic gave a significant negative impact in 2020 as a results of e.g courts in some of the jurisdictions Axactor operates in closed.
The remuneration report is presented in NOK as the majority of the group executive management is paid in NOK.
Changes in group executive management
During 2021 Nina Mortensen replaced Teemu Alaviitala as CFO.
Changes in board of directors
During 2021 Glen Ole Rødland resigned as Chair of the board, and Merete Haugli was appointed interim Chair of the board.
Remuneration 2021 change and outcome
This report details the implementation of Axactor's remuneration policy and compensation scheme for the board and group executive management for financial year 2021. In this section, Axactor provides a summary of the remuneration changes and outcomes for financial year 2021.
Group executive management
The group executive management received an increase in the annual base salary during 2021 between zero and five percent. The increase is in line with the average salary increase for non-executives in Axactor SE.
The bonus pay-out is determined based on the company's performance and individual performance. This resulted in a bonus between 9% and 25% of the individual's base salary for 2021.
The RC continuously monitors prevailing market practice and developments in remuneration in Europe and within its group of peers. Axactor values ongoing dialogue with shareholders, institutional investors, and other stakeholders to ensure that Axactor's remuneration policy is aligned with market practice and helps drive execution of the company's strategy.
In 2021, the RC has focused on the following key areas:
x Reviewing the long-term incentive plan to ensure it continues to fit business needs.
x Maintaining a close dialogue with shareholders, gathering their feedback and having subsequent discussions on their views about Axactor's remuneration arrangements.
Summary of remuneration policy
The key objectives of Axactor's remuneration policy are to support business needs by guiding the development of an appropriate total remuneration package that has a clear link to the business strategy and with shareholders' interests. The remuneration policy applicable to the members of the Group executive management and Board for FY 2021 was approved at the company's Annual General Meeting in April 2021, and is compliant with the requirements following The Norwegian Public Limitied Liability Companies Act, section 6-16 a. This report is made according to the requirements in section 6-16 a and 6-16 b of the Norwegian Public Limited Liability Companies Act and Axactor's remuneration policy. The report is based on the guidelines under Directive 2007/36/EC.
The full version of the remuneration policy is made available on the company's website (www.axactor.com) under the 'Corporate Governance' page.
The remuneration policy, including the purpose and key aspects of each of the remuneration elements, is summarised in the following table.
Remuneration policy summary
Component
Purpose and link to strategy
Group executive management
Base salary
(inclusive of pension)
Recognizes market value, the nature of the role in terms of scale, complexity and responsibility and the Executive members' experience, sustained performance and contribution.
Short-term incentiveLong-term incentives
Link executive remuneration to the achievement of long-term shareholder value creation and support the retention of the executives.
Subject to annual remuneration review, it may change in the context of the individual's long-term performance, market pay positioning and consideration of the wider employee group.
Rewards the achievement of annual company goals guided by Axactor's strategy plan.
Benefits
Board of directors
Provide for the group executive management members' health and welfare needs.
Fixed fee
Attracts individuals with a broad range of experience and skills, rewards the board members for setting strategy and overseeing its implementation.
Delivered through the stock options plans.
As per the respective benefits policy and may vary at individual level.
Fixed fees are set to reflect market practice and the role of each member of the board in terms of efforts and responsibilities.
Shareholding
Aligns the interests of the board members and shareholders.
Size of the award
Up to 100% of base salary at maximum performance.
The share purchasing is at the board members' own account.
Remuneration - group executive management
Remuneration packages of the group executive management shall comply with the company's remuneration policy, and support business needs with a clear link to the business strategy and shareholders' interests. Members of the group executive management do not receive any additional fees from other internal board positions within Axactor.
Remuneration for the group executive management for the current financial year All numbers in NOK thousand
Name / position | Year | Salary | Benefits | Bonus 5) | Pension | Total 6) | Fixed pay | Variable pay |
Current group executive management | ||||||||
2021 | 4,169 | 15 | 889 | 351 | 5,423 | 84% | 16% | |
Johnny Tsolis, CEO | ||||||||
2020 | 3,950 | 16 | 1,160 | 259 | 5,385 | 78% | 22% | |
2021 | 938 | 6 | 200 | 50 | 1,194 | 83% | 17% | |
Nina Mortensen, CFO 2) | ||||||||
2020 | - | - | - | - | - | n.a | n.a | |
2021 | 1,899 | 15 | 178 | 164 | 2,256 | 92% | 8% | |
Arnt Andre Dullum, COO | ||||||||
2020 | 1,900 | 6 | 352 | 54 | 2,311 | 85% | 15% | |
2021 | 2,025 | 15 | 295 | 143 | 2,479 | 88% | 12% | |
Vibeke Ly, Chief of Staff | ||||||||
2020 | 1,900 | 16 | 392 | 102 | 2,409 | 84% | 16% | |
2021 | 1,876 | 15 | 497 | 143 | 2,532 | 80% | 20% | |
Kyrre Svae, Chief of strategy and IR 3) | ||||||||
2020 | 1,900 | 6 | - | 58 | 1,964 | 100% | - | |
2021 | 2,737 | - | 285 | 36 | 3,058 | 91% | 9% | |
Robin Knowles, Chief Investment Officer 4) | ||||||||
2020 | 2,737 | - | 958 | 49 | 3,743 | 74% | 26% | |
Former group executive management 1) | ||||||||
2021 | - | - | 44 | - | 44 | - | 100% | |
Endre Rangnes, CEO | ||||||||
2020 | 4,988 | 11 | 3,491 | 418 | 8,907 | 61% | 39% | |
2021 | 469 | - | 1,350 | 5 | 1,824 | 26% | 74% | |
Oddgeir Hansen, COO | ||||||||
2020 | 2,700 | 16 | 1,000 | 219 | 3,935 | 75% | 25% | |
2021 | - | - | - | - | - | n.a | n.a | |
Siv Farstad, EVP HR | ||||||||
2020 | 1,700 | 4 | - | 41 | 1,746 | 100% | - | |
2021 | 604 | 3 | - | 15 | 622 | 100% | - | |
Teemu Alaviitala, CFO | ||||||||
2020 | 1,900 | 7 | - | 58 | 1,964 | 100% | - |
1) Salary in last year of employement is based on employement period in the year plus servants pay if agreed
2) Nina Mortensen was appointed CFO from 1 August 2021. Nina Mortensen received a sign-on fee of NOK 200k presented under bonus.
3) Kyrre Svae held the position as interim CFO from January 2021 to 31 July 2021
4) Remuneration to Robin Knowles is denominated in GBP, an exchange rate of 11,90 is used to convert to NOK.
5) Bonuses are paid in one installment.
6) There are no extraordinary items paid to group executive management.
The following information is not included in the table above as its not applicable for Axactor; fees, multiple year bonus, extraordinary items.
Long-term incentive plans
Granted and unvested share options in the reporting period.
Name/positionPlan
Award dateVesting date
Exercise periodStrike price
(NOK)Awarded and unvested at period start
GrantedVested in periodAwarded and unvested at period end
Johnny Tsolis, CEO
Nina Mortensen, CFO
Arnt Andre Dullum, COO
26.06.2020 26.06.2020 26.06.2020 26.06.2020
26.06.2021 26.06.2021 26.06.2021 26.06.2022
26/06/2021-26/06/2025 26/06/2021-26/06/2025 26/06/2021-26/06/2025 26/06/2022-26/06/2025
ESOP20
26.06.2020
26.06.2022
26/06/2022-26/06/2025
26.06.2020
26.06.2022
26/06/2022-26/06/2025
26.06.2020
26.06.2023
26/06/2023-26/06/2025
26.06.2020
26.06.2023
26/06/2023-26/06/2025
26.06.2020
26.06.2023
26/06/2023-26/06/2025
25.04.2020
25.04.2020
25/04/2020-25/04/2024
ESOP19
25.04.2020 25.04.2020 28.08.2017 28.08.2017
25.04.2021 25.04.2022 01.06.2018 01.06.2019
25/04/2021-25/04/2024 25/04/2021-25/04/2024 01/06/2018-15/07/2022 01/06/2019-15/07/2022
ESOP17
28.08.2017 28.08.2017 19.11.2015
01.06.2020 01.06.2021 16.02.2019
01/06/2020-15/07/2022 01/06/2021-15/07/2022 16/02/2019-01/04/2021
ESOP15
19.11.2015 02.08.2022 02.08.2022 02.08.2022
16.02.2020 26.06.2022 26.06.2022 26.06.2022
16/02/2020-01/04/2021 26/06/2022-26/06/2025 26/06/2022-26/06/2025 26/06/2022-26/06/2025
ESOP20
02.08.2022
26.06.2023
26/06/2023-26/06/2025
02.08.2022
26.06.2023
26/06/2023-26/06/2025
02.08.2022
26.06.2023
26/06/2023-26/06/2025
26.06.2020
26.06.2021
16/06/2021-26/06/2025
26.06.2020
26.06.2021
16/06/2021-26/06/2025
26.06.2020
26.06.2021
16/06/2021-26/06/2025
26.06.2020
26.06.2022
16/06/2022-26/06/2025
ESOP20
26.06.2020 26.06.2020 26.06.2020
26.06.2022 26.06.2022 26.06.2023
16/06/2022-26/06/2025 16/06/2022-26/06/2025 16/06/2023-26/06/2025
26.06.2020 26.06.2020 25.04.2019
26.06.2023 26.06.2023 25.04.2020
16/06/2023-26/06/2025 16/06/2023-26/06/2025 25/04/2020-25/04/2024
ESOP19
25.04.2019 25.04.2019 06.06.2018 06.06.2018
25.04.2021 25.04.2022 01.06.2018 01.06.2019
25/04/2021-25/04/2024 25/04/2022-25/04/2024 01/06/2018-15/07/2022 01/06/2019-15/07/2022
ESOP17
06.06.2018 06.06.2018
01.06.2020 01.06.2021
01/06/2020-15/07/2022 11/06/2021-15/07/2022
28 22 17.25 28
125,000 75,000 50,000 125,000
125,000 75,000 50,000
125,000
22
75,000
75,000
17.25
50,000
50,000
28
125,000
125,000
22
75,000
75,000
17.25
50,000
50,000
24.5
77,485
26.5
77,485 77,486 75,000 75,000
77,485
28 30 32
77,486
35 37.5 12.5
75,000 75,000 270,000
75,000
13 28 22 17.25
190,000 - - -62,500 37,500 25,000
62,500 37,500 25,000
17.25
28
22
- - - 62,500 37,500 25,000 62,500
62,500 37,500 25,000
62,500 37,500 25,000
17.25
28
22
62,500 37,500 25,000
28
62,500
22 17.25 28
37,500 25,000 62,500
37,500 25,000 62,500
22 17.25 24.5
37,500 25,000 38,742
37,500 25,000
26.5
38,742 38,744 18,750 18,750
38,742
28 30 32
38,744
17.25 37.5
18,750 18,750
18,750
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Disclaimer
Axactor SE published this content on 01 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 April 2022 11:44:19 UTC.
