This interview is part of our special focus section: Reinforcing Corporate Governance. Learn more, and find more content on this subject in the Q1 2026 edition of our Sustainable Investment Review.
As a portfolio manager, how does your work with corporate governance differ from that of the Risk & Ownership team. Do you collaborate, and if so, how?
We integrate our corporate governance work within the financial and strategic discussions we have with the company when we meet them. The Risk & Ownership team is included in discussions regarding various policy themes such as workers' rights, externalities, and emissions. Such a collaboration makes it possible for us to make better investment decisions for Storebrand's clients and the shareholder community as a whole.
What role does Storebrand Asset Management play in shaping and influencing corporate governance in portfolio companies?
As a large owner in the Norwegian financial markets, we have had the possibility to alter board composition, change dividend policies or initiate changes in corporate structures for Norwegian listed companies. Over time, we have made use of all these three tracks to increase the value of our equity holdings.
Also, I think the distinction between being a shareholder, versus the other stakeholders of a company, is important to highlight. A shareholder is mostly interested in the long-term economic value creation of a listed company. Stakeholders, such as employees, suppliers, and society at large, might have other views as well.
Every proposal set forward at an annual general meeting has its alternative value. As an asset manager, that very valid point must always be a key consideration, especially as long-term investors such as Storebrand Asset Management.
What is the role of balance in corporate governance between management and shareholders? How should it work?
Corporate governance is about aligning the interest of the shareholders with the work of the board and the management of the company. This triangle is a smooth value generating process if the corporate governance of a company is well set.
How does managing and assessing corporate governance work in practice for you as a portfolio manager, and what are you ultimately aiming to achieve?
During my 30 years of work as a portfolio manager, managing and assessing corporate governance has been an integrated part of our portfolio work and stock picking. In my role, we mainly emphasize what we believe can create value for the shareholders of a company.
Every year, we do approximately 150 one-to-one meetings with either the CEO or the chairman of the board of the companies which we are invested in. This gives us a wide range of possibilities to suggest and discuss possible ways of creating value which, in my case, means Norwegian listed companies.
For instance, not every company has the discipline to assess the value of its assets for an alternative investor, and some Norwegian companies can at times become significantly undervalued. This creates possibilities for the boards of the respective companies to create value for its shareholders, which is aligned with the goal that we are ultimately trying to achieve.
When engaging large and complex multinational companies, what level of detail is required in practice to drive meaningful dialogue? Is it different to companies focused on smaller markets?
When we engage with larger, more complex companies, we typically apply a lower level of detail in our analysis. In our work with corporate governance, we always seek a balance between the level of detail and what is necessary to make informed decisions — time is money, also for a portfolio manager. That said, we have been able to alter decisions among two of Norway's largest listed companies.
You have been managing investments in listed Norwegian companies on behalf of Storebrand Asset Management since 1998. Over this period, where have you seen corporate governance create or destroy value for investors?
A well-functioning set of corporate governance guidelines is without a doubt an important asset for all capital markets. As we witnessed in Norway during the 1990's, there was quite a few occasions were minority shareholders lost money due to unsatisfactory corporate governance in listed companies.
As a consequence, in 1998, Storebrand introduced its guidelines for active ownership which was published in Storebrand ASA's annual report. Later, this became a part of the first set of Norwegian Corporate Governance Guidelines in 2004. To a large degree, this has led to better Norwegian corporate governance. From my perspective as a portfolio manager, I think there is a case to be made that if you want portfolio returns, the "G" is by far the most important aspect of ESG.
Looking ahead, how do you see the role of corporate governance evolving within asset management more broadly?
In the last 15 years, we have seen a somewhat increasing trend towards stakeholders' actions, opposing the shareholder approach in Norwegian annual reports and annual general meetings. I hope this trend will reverse slightly, and that value creation will continue to be the main theme. In hindsight, we have also seen that the Norwegian corporate guidelines have served the Norwegian equity market very well for 22 years. I believe this will be the case for the next decade as well.