Nordea Remuneration components - purpose and eligibility

Fixed Salary is compensating employees for full satisfactory performance. The individual salary is based on three cornerstones: job complexity and responsibility, performance and local market conditions.

Profit Sharing is aiming at stimulating value creation for the customers and shareholders and is offered to all employees. The performance criteria reflect Nordea’s longterm targets: Risk-adjusted profi t and Total Shareholder Return compared to the Nordic peers and relative Customer Satisfaction Index.

Variable Salary Part (VSP) is offered to selected managers, specialists and key employees to ensure focus and strong performance. Judgement of individual performance shall be based on a pre-determined set of well-defined financial as well as non-financial success criteria, including Nordea Group criteria.

Bonus scheme is offered only to selected groups of employees employed in specifi c businesses areas or units. The aim is to ensure focus, strong performance and maintain cost flexibility for Nordea. Judgement of individual performance shall be based on a pre-determined set of well-defi ned financial as well as non-financial success criteria, including Nordea Group criteria.

One Time Payment (OTP) can be granted to employees in case of extraordinary performance exceeding requirements or expectations. Employees participating in a Bonus scheme cannot be offered an OTP and employees having Variable Salary Part can only in very extraordinary situations be offered an OTP.

Long Term Incentive Programme (LTIP) is aiming at improving the long term shareholder value and to strengthen Nordea’s capability to retain and recruit the best talents. The programme targets managers and key employees identified as essential to the future development of the Nordea Group. The performance criteria reflect Nordea’s long-term financial targets: Risk-adjusted profit and Total Shareholder Return compared to the Nordic and European peers.

Pension and Insurance schemes offered are aiming at ensuring employees an appropriate standard of living after retirement as well as personal insurance during employment. Pension and insurance provisions are according to local law, regulation and market practice done either in form of determined public collective-agreements, company determined schemes or in a combination of these elements. Nordea aims at having defined contribution pension schemes.

Benefits in Nordea are given as a means to stimulate performance and well being. Benefits are either connected to the contract of employment or local conditions.

Further information regarding Profit Sharing, Variable Salary Part, Bonus schemes and Long Term Incentive Programmes.

Source: Annual Report 2009