Remuneration to GLT

Remuneration components

Remuneration to the members of the GLT consists of:

  • Fixed base salary
  • Short-term incentive plan (STIP), Nordea Incentive Plan (NIP) for GLT members
  • Long-term incentive plan (LTIP)
  • Pension costs
  • Benefits

The actual paid amounts to GLT members in 2022 are outlined in the table below.

EUR
Fixed
salary
STIP
earned
pre 2022
Benefits
Pension
expense
Total
remuneration
paid in 2022
STIP
earned
in 2022
LTIP earned 2020-2022
Total
remuneration
earned in 2022
Deputy Managing Director
545,545
174,127
18,391
192,950
931,013
354,792
417,729
1,529,407
Other GLT members
(excluding Group CEO
and Deputy Managing Director)
6,831,481
3,060,650
178,296
1,781,737
11,852,164
4,148,166
3,759,565
16,699,245

 

For more information about remuneration paid to the GLT members please refer to note G8 of Nordea’s Annual Report.

Fixed pay

Base salary and allowances (if any) paid in monthly instalments.

Nordea Incentive Plan for members of the GLT

The NIP 2022 for GLT members had predetermined targets at group, business area/group function and individual level, including financial and non-financial goals aligned to meeting Nordea’s 2025 strategic priorities.

The NIP 2022 had a one-year performance period. The outcome from NIP 2022 could not exceed 75% of fixed base salary except for the CRO and CCO with a maximum cap of 100%.

The outcomes from NIP 2022 will be paid out partly in cash and partly in shares over a five year period, and are subject to forfeiture clauses. 40% of the NIP 2022 outcome will be delivered in 2023. The remaining 60% will be paid out annually pro-rata over 5 years with 12% vesting each year. 50% of the NIP 2022 outcome is delivered in Nordea shares at each vesting event, which are further subject to 12-months’ retention.

Long-Term Incentive Programme

In 2022, the Board of Directors continued the Long-Term Incentive Programme 2022-2024 (LTIP) which includes most GLT members except for the CRO and the CCO. The main purpose of the LTIP is to further align the GLT’s interests with those of shareholders.

The LTIP has a three-year performance period.

The assessment of performance during the LTIP performance period will be based equally on the following performance criteria:

  • Relative Total Shareholder Return measured against selected Nordic peer banks
  • Absolute Total Shareholder Return
  • Absolute cumulative Earnings Per Share

A risk adjustment underpin is included.

GLT members must hold a significant number of shares granted until the total value of the shareholding in Nordea corresponds to 100% of the gross annual fixed base salary. Such shares must be held until the end of the GLT membership.

Pension

In addition to fixed and variable remuneration, GLT members are in most cases subject to pension agreements offered in accordance with market practice in the country of which they are permanent residents. Hence, the pension agreements for GLT members vary according to local country practices.

Benefits

The levels of benefits are determined by what is considered fair in relation to general market practice, and primarily include car benefits, housing benefits, tax consultation and liability insurance.

Notice period and severance pay

GLT members have a notice period of 6 months and Nordea a notice period of 12 months. Entitlement to severance pay of up to 12 months’ salary is provided.