Aker Solutions chief executive’s total remuneration shot up by NOK4million last year despite the service company’s net profit more than halving.
Luis Araujo’s base salary stayed the same as 2015, taking home just over NOK7million.
However variable pay and ‘other benefits’ contributed to the CEO’s NOK12million pay packet.
Variable pay is based on the financial performance of the company.
The Norwegian firm’s annual report showed that net profit fell from NOK383million in 2015 to NOK152million last year.
Earnings before interest, tax, depreciation and amortization increased slightly on 2015 levels to NOK1.9million.
Revenue declined to NOK 25.6 billion in 2016 from NOK 31.9 billion the year before amid a market slowdown.
Earnings before interest and taxes (EBIT) fell to NOK 687 million from NOK 958 million a year earlier, burdened by NOK 163 million in costs for restructuring and reducing workforce capacity and NOK 82 million to cover lease costs on vacated office space.
The executive management team also went through a reshuffle last year, with roles and titles changing for six board members and an additional seat added to the table.
Total remuneration for the senior management team cost Aker NOK49,278,055 compared to NOK40.8million the previous year.
In the preface to the firm’s annual report, Araujo said: “The markets remain challenging, but there are some recovery signs.
“Oil prices are off their lows and are seen stabilizing at a higher level in 2017.
“While offshore investments are expected to remain subdued, the industry is moving out of survival mode.
Cost cuts, simplified field architecture and a deeper collaboration have lowered the break-even on major projects. This is expected to help the industry move forward with new investments.”
He added: “We anticipate a slow acceleration of project sanctioning this year, particularly for brownfield projects as the industry seeks to extract additional value from existing assets. I am encouraged by these positive signs.
“But I am even more energized by the way we are tackling the market challenges as we push ahead in pursuit of our vision to be a leader in driving the sustainable development of our industry.”