Note 19 - Salaries and Wages, Number of Employees

Employees included in the above payroll in 2016 were 4 (2015: 6).

Personnel expenses (1)

Consolidated

(Amounts in USD 1,000)

2016

2015

Salaries and wages

73,381

69,982

Government grants - net wages arrangement in Norway

-3,852

-4,801

Payroll tax

9,416

9,740

Pension costs, see Note 8

1,511

2,177

Other benefits

8,491

5,178

Total personnel expenses

88,947

82,276

(1) Personnel expenses includes vessel crew expenses and part of general and administrative expenses, see Note 18.

Government grants are a special Norwegian seaman payroll and tax refund given to Norwegian shipping companies.

The average number of employees in the Company was 1,058 for 2016 (2015: 949), including onshore and offshore employees. There are no employees in the Parent Company.

Payroll registered to the executive management:

(Amounts in USD 1,000)

2016

2015

Salary and other short term compensation

1,558

1,860

Total

1,558

1,860

Employees included in the above payroll in 2016 were 4 (2015: 6).

Corporate management salaries and other benefits are presented in the table below:

Name

Salary paid

Pension premium

Other benefits

Share options held

2016 (Amounts in USD 1,000)

CEO Idar Hillersøy

511.5

28.4

5.5

-

CFO Dagfin B. Lie

253.1

21.6

9.2

2,400,000

CCO Bernt Omdal

327.5

26.5

4.4

2,400,000

CHRO Tore B. Johannessen

331.5

31.1

8.1

2,400,000

Shares in the Company held by members of corporate management in 2016 were 1,538,161 (2015: 1,538,161).

2015 (Amounts in USD 1,000)

CEO Idar Hillersøy 1)

237.2

28.0

1.9

-

CEO Terje Sørensen 1)

379.6

33.1

39.7

-

CFO Dagfin B. Lie

211.2

21.3

10.2

2,400,000

COO Svein Erik Mykland 2)

263.7

35.6

6.9

-

CCO Bernt Omdal

260.2

26.1

2.5

2,400,000

CHRO Tore B. Johannessen

268.0

31.4

3.0

2,400,000

1) Idar Hillersøy replaced Terje Sørensen as CEO with the effect from July 2015.

2) COO Svein Erik Mykland left the Company with the effect from December 2015.

The Board of Directors of Siem Offshore Inc. has authorized the award of two programs of Stock Options to seven employees of the Company. See Note 31 for more information.

Loan to executive management

(Amounts in USD 1,000)

2016

2015

Balance January 1

716

3,331

Changes in executive management

-

-2,760

New loan raised

-

227

Instalments

-

-

Effect of currency differences

12

-83

Balance December 31

727

716

Loan on December 31, 2016 (Amounts in USD 1,000)

Amount

Interest

Terms

Loan to executive management

727

11

Share loan (1)

Total

727

11

Loan on December 31, 2015 (Amounts in USD 1,000)

Amount

Interest

Terms

Loan to executive management

716

9

Share loan (1)

Total

716

9

(1) Share loan: The loans are repayable by the employee when the employee’s shares in the Company are realized or if the employee leaves the Company. Loans equivalent to USD 4 million are secured by pledges in relevant shares.

The Remuneration paid to the Board of Directors in 2016 was USD 407K (2015: USD 430K).

Auditor’s remuneration

Parent company

Consolidated

2016

2015

(Amounts in USD 1,000)

2016

2015

87

96

Audit Fee

452

484

15

101

Audit Fee Other

212

226

10

11

Tax/Legal Assistance

10

41

13

6

Other consultants, Fees

41

259

126

214

Total auditor’s remuneration

715

1,010

Board Of Directors

Financial Statements

Notes