OSLO, Norway, June 15, 2006 (PRIMEZONE) -- Hydro's Board of Directors has adjusted the basic salary for 2006 of President and CEO Eivind Reiten by 3.4 percent to NOK 4.6 million. The Board has resolved to award a bonus of NOK 1.5 million to the President and CEO for results achieved in 2005. This bonus has been awarded in accordance with the bonus criteria set for 2005.
Hydro's remuneration package for top managers consists of the basic salary, a performance-based bonus and share appreciation rights as a long-term incentive. In line with this, the Board has also allocated 75,000 share options to the President and CEO and 50,000 share options to each of the other members of Hydro's corporate management. The allocation is being made in accordance with the same principles and number of shares allocated previously, taking the share split into consideration. The allocations will be effected on 1 July 2006. The share options must be exercised in the period from 1 July 2009 to 30 June 2012. The exercise price is fixed at 10 percent above the average Oslo Stock Exchange closing price for the final 20 days preceding 1 July 2006. Conditions have been set requiring managers who exercise options to commit themselves to a long-term shareholding in the company. The maximum limit on the total gain that may be realized by exercising the options is equivalent to the individual basic salary for the year in which the options are exercised.