NEWS

Norway’s $915 billion wealth fund proposed reining in long-term incentive packages for chief executive officers, saying a “substantial proportion” of pay should be provided in shares that are locked in for as long as 10 years.

Pay practices should also be simple and avoid putting undue strain on corporate governance and allotted shares shouldn’t have performance conditions and “complex criteria,” the world’s largest sovereign wealth fund said in a report released on Friday in Oslo.

Yngve Slyngstad, the fund’s chief executive officer, said the investor for now prefers a general discussion and that setting specific targets will still be up to company boards.

“The most important thing for us is that these structures are long term,” he said at a press conference in Oslo.

The state-controlled fund has become increasingly activist in its approach to corporate governance and also on Friday called for more transparency by companies on taxes and said that these should be paid where the economic value is generated.