Executive Board

The Executive Board lays down guidelines and strategic plans for NBIM’s management activities. The aim is to add value through active management of the government’s and Norges Bank’s foreign financial assets, foster the owners’ long-term financial interests through active ownership and implement the owners’ management strategy in a cost-effective, prudent and confidence-inspiring way. In addition to the Government Pension Fund Global, NBIM manages the bulk of Norges Bank’s foreign exchange reserves.

NBIM’s governance model differs from other parts of Norges Bank. NBIM’s Executive Director has the responsibility and authority of CEO of the unit. He reports directly to the Executive Board and is subject to continuous oversight by the Governor on behalf of the board.

The Executive Board has reinforced its oversight of NBIM in recent years. In 2008, it issued a job description and an investment mandate for NBIM’s CEO. The mandate supplements the Ministry of Finance’s investment limits by setting additional rules for what the fund may invest in and how much risk NBIM can take in its management.

The Executive Board adopted principles for risk management at NBIM in 2009. These are based on a common framework and risk is split into four categories: market risk, credit risk, counterparty risk and operational risk. The principles for risk management in each of these categories are supplemented by more concrete risk limits for the organisation.

The Executive Board also set up a compensation committee in 2009 as a subcommittee and preparatory body for the Executive Board. The committee shall prepare recommendations for the Executive Board on the main terms and pay bands for the Executive Director of NBIM and other senior managers reporting directly to him. It shall also prepare recommendations for the Executive Board on the principles for performance-based remuneration and, annually, on the overall limits for the payment of performance-based remuneration.