That’s probably right that it does not serve Tine’s interests to state what top manager John Sullivan in the subsidiary Norseland Inc. receives in salary and pension.
The question is why neither Tine’s chairman of the board or CEO can stand up to explain opinion and owners why it is like this. Because even though Norwegian mothers may be tempted to let their daughter in the US answer for themselves, it is also wise to remember who the owners are. In Norway, we like openness as much as possible. There are things that prevent speculation and bad mood.
Although neither Marit Haugen or her CEO Gunnar Hovland will go out with what their US CEO earns, there are several things they could have answered the Nation.
Seems the Tine management for example, that the Norseland boss’s salary – whether it should now be above or below 20 million – is in proportion to what his company contributed to its Norwegian owners? And what about the pension benefits of the US president – whether they may be above or below 50 million?
The Norseland chiefs talks about “a fantastic distribution in the USA”, with 31,000 outlets that “can and will act as a door opener to succeed with other products” than Jarlsberg.
To succeed? Despite the fact that Tine’s presence in the United States is old, the success is mentioned in future form. 44 million in 2020 operating profit accounts for less than two percent of the turnover in Norseland Inc. There is not a very good return for Tine’s 11,000 owners. It is their capital that is located and exposed in the USA, in a market that is extremely risky and exposed to competition, measured against Tine’s Norwegian operations.
Equinor, another Norwegian-owned billion-dollar industry, lost around 200 billion on high-risk activity in the United States. This does not mean that Tine will lose its far more modest investments in the United States. But it can happen. And Tine’s owners can much MUCH afford to take losses than Equinor’s majority owner, the Norwegian state.
Both turnover and result in Norseland Inc. is known to Tine’s American competitors. Why should it be competition-sensitive what the Norseland boss earns? Will it be easier for American dairymen to compete on the store shelf with such information?
That which is completely sure, is that the top manager’s many millions’ salary is farmer sensitive information. In Norway.
I have not spoken with so many in American dairy business. But I’ve talked to quite a few owners in norsk meieribisniss. They do not earn much. And they would hardly like it if their US subsidiary in 2020 paid MORE in salary and pension benefits to John Sullivan than what Sullivan sent home to the owners.
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