SBM Offshore has noted various comments in the press resulting from the publication of the annual accounts 2014 relating to the remuneration of the MB and Executive Management. As the Company would regret any misunderstandings on this topic it wishes to clarify the following:
- Base salaries of the CFO and CGCO have not been increased from 2013 to 2014; the salary of the CEO was increased per 1 July 2013 following a benchmarking study commissioned by the Remuneration Committee of the Supervisory Board. There will be no base salary increases for the Management Board in 2015.
- The “50% increase” quoted in several media is taken from the “as paid” table in the annual accounts. In that column 2013 relates to the bonuses paid in 2013 on account of performance in the year 2012, which for the CFO and CGCO were approximately half years as they started mid-year, whereas the bonuses paid in 2014 over 2013 cover full years, hence the “50%” increase. The “as accrued” table presents a more appropriate picture.
- With base salaries for 2 of the 3 MB members at the same level for 2013 and 2014 any projected increase is due to variable compensation paid in shares; these shares are conditionally awarded, and need to vest based on performance over the coming years. Pay –out is dependent on the achievement of targets set by the Supervisory Board as well as the development of the share price.
- MB members pay taxes in their place of residence. The CGCO, Sietze Hepkema, is a resident of the Netherlands. The CEO and the CFO pay taxes in the Netherlands over the part of their income derived from their capacity as statutory director of SBM Offshore N.V.