three green bullets

Employees

Hydro had 22,655 permanent employees at the end of 2011, an increase from 18,894 in 2010. In addition, we had 1,368 temporary employees as well as contractor employees representing about 8,900 full-time equivalents during 2011. The increase in employees last year was mainly due to the acquisition of Vale's former aluminium business, while restructuring measures elsewhere in the company, especially within Hydro Building Systems, had an opposite effect on the overall level. We now have the highest number of employees in Brazil, followed by Germany, Norway and the U.S.

Hydro reviewed its people strategy in 2011. The strategy's five pillars are our performance culture, competence management, leadership pipeline, diversity, and mobility.

We see the importance of maintaining our position as an attractive employer. New employees are offered essential training to better understand the organization and their work tasks and to gain the required competence within health, security, safety and environment. In 2011, we initiated a program to welcome our new employees in Brazil, which included an introduction package about Hydro and the company's ambitions and values. Our aim is that all the new employees in Brazil should take part in 2012 in a program to learn about Hydro's values, HSE and social responsibility principles, and value chain.

We emphasize diversity with regard to nationality, culture, gender and educational background when recruiting and when forming management teams and other working groups. While 84 percent of top management are Norwegian or German, only 36 percent of Hydro's employees are the same. Women are represented in all business area management teams, and most female executives hired in recent years have been recruited internally. We are aiming at further diversity at all levels and plan to launch a diversity awareness program globally in 2012.

Fourteen percent of Hydro's employees globally are women, compared to 11 percent in Brazil and Germany, 18 percent in Norway and 19 percent in USA. Around 80 new employees were recruited to the Norwegian part of the organization in 2011, compared to 100 in 2010. Of these, 19 percent were women in 2011, compared to 20 percent in 2010.

We are continually adjusting working conditions so that all employees, regardless of disabilities or physical limitations, have the same opportunities.

All employees shall be secured a total salary that is fair, competitive and in accordance with the local industry standard. Only relevant qualifications such as performance, education, experience and other professional criteria shall be taken into account when making appointments, or when providing training, settling remuneration and awarding promotion. There are no significant gender-pay differentials for employees earning collectively-negotiated wages in Norway. Salary conditions in the Norwegian business are reviewed on a regular basis. No significant gender-related differences were found in 2011. If significant differences are found at any level, we have a tradition for closing the gaps within a short time.

HSE, organization development and social responsibility are part of the bonus evaluation for the President and CEO and other members of the corporate management board. See Note 10 and 11 for further information on executive compensation.

The board of directors would like to acknowledge Hydro's employees for their high spirit, significant adaptability and important achievements at operations across the world, and for strengthening Hydro's competitiveness in a challenging market situation.

Updated: March 21, 2012
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