The Boards of Nordnet AB (publ), Nordnet Bank AB, Nordnet Pensionsförsäkring AB and Nordnet Livsforsikring AS have, in accordance with established requirements, adopted remuneration guidelines 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 24 March 2021.
Remuneration to the CEO and other members of the management team is made up of fixed salary, possible cash variable remuneration, 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 monthly salary of the CEO Lars-Åke Norling amounted to SEK 437,500 until March 2020 and to SEK 583,333 from 1 April 2020. For more information, see Note 12 in the Annual Report 2020.
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. If the variable remuneration during one year exceeds SEK
100,000, at least 60 percent of the remuneration shall be postponed for at least three years before it is paid out or ownership goes over to the senior executive.
Read more about variable remuneration in the Board of Director's report in the Annual Report 2020.
Long-term share-based incentive programs
Long-term share-based incentive programs shall be decided on by the General Meeting and is therefore not covered by remuneration guidelines.
Pension
The pensions provisions to all senior executives, shall be covered by the same policy, except for the CEO. 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 2020.
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
Upon notice by Nordnet, the period of notice shall be a maximum of 12 months. Upon resignation by the senior executive, the period of notice shall be a maximum of six months. Severance pay should not exist.
