The Boards of Nordnet AB (publ), Nordnet Bank AB, Nordnet Pensionsförsäkring AB and Nordnet Livsforsikring AS have, in accordance with established requirements, adopted a remuneration policy in order to establish a compensation system in each company that promotes fair and effective risk management and prevents an excessive risk taking.
Remuneration issues are prepared by each company’s board or, if applicable, the remuneration committee and later approved by each company’s board of directors. Each company’s board analyses all the risks which the Company is or may be exposed to, including the risks associated with the current remuneration policy. Based on the analysis the respective board identifies which employees are deemed to be employees whose work has a significant impact the company’s risk profile or staff that could affect the company’s risk level. Latest admitted analysis can be found here:
Redogörelse för Nordnets ersättningssystem och analys av risker förenade med ersättningssystemet (In Swedish) updated 20 March 2020.
Remuneration to the CEO and other members of the management team is made up of fixed salary, possible cash variable remuneration, the possibility to participate in long-term share-related incentive plans resolved by the general meeting, pension and as well as other customary benefits.
Fixed salary
The senior executives’ fixed salary is revised each year and shall be competitive and based on the individual’s competence, responsibility and performance. The fixed remuneration shall also constitute a sufficiently large part of the executive’s total remuneration to enable the variable components to be set at zero.
Fixed remuneration of the CEO Lars-Åke Norling amounted to SEK 437,500 per month as of 1 September 2019. Fixed remuneration of the former Acting CEO Anders Danielsson amounted to SEK 416,667 per month (416,667) until 31 August 2019. For more information, see Note 12 in the Annual Report 2019.
Variable remuneration
The senior executives’ variable cash remuneration shall be based on how well-defined targets for their respective areas of responsibility and for Nordnet as a whole have been met. Both financial and non-financial criteria shall be taken into account in the assessment. The maximum payment of the variable remuneration may not exceed a maximum of 100% of the senior executive’s annual fixed salary.
Long-term share-related incentive plans
The executive management team may be offered incentive plans which should essentially be share-based or share price-based. An incentive plan shall aim to improve the participants’ commitment to the company’s development and is implemented on market conditions. Long-term share-related incentive plans shall be resolved by the general meeting and are therefore not within the scope of these guidelines.
Pension
The pensions provisions to all senior executives, save for the CEO, shall be covered by the same policy. The pension commitments shall be premium-based and are secured by premium payments to insurance companies. The size of the pension premiums follows the company’s pension plan and shall essentially correspond to the provision levels that apply according to the BTP 1-plan and have limitation as follows in relation to the fixed annual salary. No contributions are made for salary components exceeding 30 income base amounts calculated on an annual basis. For members of Company management who are not resident in Sweden, local rules leading to a pension under the same conditions are applied. As general rule, variable cash remuneration shall not be pensionable.
The CEO is entitled to monthly pension contributions corresponding to 35 % of the base salary. Regarding pension costs, see the Annual Report for fiscal year 2019.
Other benefits
Other possible benefits shall be customary and facilitate the executive’s ability to perform its tasks, such as company car, occupational health care and health insurance.
Notice and severance pay
The members of the executive management has between six and twelve months’ notice period. The exact number of months depends on the position in the executive management team. The period of notice for CEO is twelve months’ notice by the company and six months’ notice by the CEO. There are no agreements regarding severance pay or any cash bonus programs applicable to the CEO or other senior executives, and there are no accrued amounts and no provisions have been made for pensions and similar benefits following resignation of senior executives.
