Biggest sovereign fund to weigh in on executive pay
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OSLOMay 03, 2016 - 12:00 am GMT+3
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May 03, 2016 12:00 am
Norway's sovereign wealth fund, the biggest in the world with shares in more than 9,000 companies, will take a closer look at the controversial issue of executive pay, the country's central bank said Monday.
"It is a theme that we will watch," Martha Skaar, a spokeswoman for the division of the Norwegian central bank responsible for managing the fund, told AFP on Monday.
The fund is worth nearly seven trillion kroner ($868 billion) and a powerful influence on how the companies it invests in are run. The issue of excessive executive compensation has become a hot topic for investors. The Fund will write a "position paper" to show where it stands on the issue, the spokeswoman said. No release date for the paper had been fixed. In an interview with the Financial Times published Sunday, the head of the Norwegian fund announced that they planned to add their powerful voice to the debate."We have so far looked at this in a way that has focused on pay structures rather than pay levels. We think, due to the way the issue of executive remuneration has developed, that we will have to look at what an appropriate level of executive remuneration is as well," Yngve Slyngstad, chief executive of the fund, told the Financial Times. Positions taken by the fund, which holds the equivalent of 1.3 percent of world market capitalization, are seen as important indicators by other investors. The Norwegian fund's investment policy is run according to strict ethical rules, with a focus on sustainable economic, environmental and social development.
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