1 Introduction

The State plays a key role in the development of Norwegian industry. The interaction between a competitive and innovative industry and an actively participating State is a sentral aspect of the Norwegian social model. We have had more success than many other countries, where the State plays a more withdrawn role.

Extensive State ownership is an important contributory factor in the positive development of industry in Norway. State ownership must be administered in an active and professional manner, with long-termism, predictability and corporate social responsibility as characteristics of a strategy for increased value creation, industrial growth and secure jobs, both in Norway and internationally.

There is broad engagement to the State ownership policy. This is both understandable and beneficial, primarily because the State is such an important owner within Norwegian industry. Why the State owns, what the State owns and how the State administers its ownership is continually being assessed by professional environments, analysts, politicians and the media.

In its capacity as owner, the State administers substantial assets for the common good. The value of the State’s shareholdings in the companies discussed in this report is estimated at around NOK 600 billion as at the end of 2010. The State-owned companies that are listed were valued at around NOK 500 billion. This corresponds to about one third of the value of the assets listed on Oslo Stock Exchange.

These companies create considerable value and employ many people. The broad commitment to the ownership policy is therefore also of benefit, as it intensifies the exercise of ownership and imposes demands on the State as owner.

It is four years since the government launched Report no. 13 (2006–2007) to the Storting Active and Long-term State Ownership. This report1 continues the key aspects of the previous report. The State’s principles for good exercise of ownership are firmly established, with the distribution of responsibility between board and owners as an underpinning element. The government will continue to express clear goals for the ownership of each company in order to create predictability as regards the corporate governance with respect to both the companies and other shareholders.

However, changes have also taken place in recent years which necessitate the updating of the State’s ownership policy. This report is based on the sound principles from the previous report, the experience that we have gained and changes that have taken place since then.

The consequences of globalisation, changes in best practice for corporate governance and corporate social responsibility are themes which will be touched upon in more detail in this report.

Internationalisation, tougher competition and clearer expectations concerning corporate social responsibility impose requirements on the further professionalisation of the ownership administration. This report therefore gives notice that the State’s ownership administration will be strengthened.

This report assesses the need for more flexibility within State ownership. The State shall be a professional and long-term owner that contributes to the profitability and industrial growth of the companies. At the same time, like good private sector owners, the State must also be a dynamic owner. State ownership must reflect the company’s development and the owner-related resources that are required. The ownership must be assessed in the light of whether State ownership is a suitable instrument for fulfilling relevant social tasks.

The government believes that the State should remain a major shareholder within key Norwegian companies and will maintain the State’s ownership at around the current level. The State shall continue to contribute to the positive and stable growth of Norwegian industry. With the steps that are taken in this report – greater professionalisation within the ownership administration, flexibility in ownership and a broad review of the ownership policy – the government is aiming to administer the State’s ownership in an optimal manner.

As an owner, the State has clear expectations that the companies will fulfil their corporate social responsibility and take the lead in their respective fields. The government believes that the fulfilment of corporate social responsibility will contribute to the profitability of the companies in the long term. In this report, the government is aiming to clarify and strengthen the expectations relating to corporate social responsibility.

This report also gives notice of a tightening of the guidelines concerning the pay conditions of senior executives within the companies in which the State has a shareholding. At a general level, the salaries of senior executives in the companies in which the State has a shareholding have not developed in line with the government’s goal of moderation. This report therefore imposes a requirement for greater transparency surrounding the determination of salaries within the wholly owned companies through reporting requirements and a requirement for presentation to the annual general meeting, requirements to which public limited liability companies are currently subject. In addition, restrictions are introduced concerning the pension benefits that the companies should include in their agreements with senior executives.

Chapter 2 presents an overview of the scope and development of the State’s ownership in recent years, together with a description of development trends within industry and corporate governance globally. Some of the topics addressed are of particular relevance to the State’s ownership in companies which primarily have commercial objectives (commercial companies in Categories 1–3), while other topics are also relevant for the companies with goals relating to sectoral policy (Category 4). Chapter 3 reviews the way in which the ownership administration is organised, the framework that follows from applicable legislation and role distribution and the corporate governance principles to which the government attaches importance in its execution of ownership. Chapter 4 outlines the State ownership in a number of other countries. Chapter 5 presents the government’s ownership policy based on why the State owns, what the State should own and how the State will own.