Incentive systems

Nordea offers competitive, but not market leading compensation packages. Nordea has a total remuneration approach to compensation that recognises the importance of well-balanced but varied remuneration structures based on business and local market needs, and of compensation being consistent with and promoting sound and effective risk management, and not encouraging excessive risk-taking or counteracting Nordea’s long-term interests.

The following variable compensation components are viewed as part of Nordea's incentive systems.

Executive Incentive Programme (EIP)

In 2013, Nordea introduced Executive Incentive Programme 2013 (“EIP 2013”) which aims to strengthen Nordea’s capability of retaining and recruiting the best talents. Furthermore, the aim is to stimulate the managers and key employees whose efforts have a direct impact on Nordea’s result, profitability and long-term value growth. In 2014, Nordea will offer an EIP 2014 with similar aims and structure as EIP 2013.

EIP rewards performance that meets agreed predetermined targets at Group, business unit and individual level. The effect on the long-term result is to be considered when determining the targets. EIP shall not exceed the fixed salary.

EIP shall be paid in the form of cash and be subject to TSR-indexation, deferral, forfeiture clauses and retention as per relevant remuneration regulations. The main part of EIP 2014 is paid no earlier than October 2018.

Participation in the programme will be offered to up to 400 managers and key employees, except GEM, at the Nordea Group. Since 2013, EIP has been offered instead of Nordea’s LTIP and VSP for the invited employees.

Updated: March 2014
Source: Annual Report 2013