Remuneration to GLT

Remuneration components

Remuneration to the members of the GLT consists of:

  • Fixed base salary
  • Short-term incentive plan (STIP), Executive Incentive Programme(EIP) for GLT members
  • Long-term incentive plan (LTIP)
  • Pension costs
  • Benefits

The actual paid amounts to GLT members in 2021 are outlined in the table below.

EUR
Fixed
salary
STIP
earned
pre 2021
Benefits
Pension
expense
Total
remuneration
paid in 2021
STIP
earned
in 2021
Total
remuneration
earned in 2021
Deputy Managing Director
481,447
101,436
21,634
139,623
744,140
314,137
956,841
Other GLT members
(excluding Group CEO
and Deputy Managing Director)
6,292,854
1,652,217
155,467
1,441,569
9,542,107
3,829,690
11,719,580

 

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.

Executive Incentive Programme for members of the GLT

The EIP 2021 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 2022 strategic priorities.

The EIP 2021 had a one-year performance period. The outcome from EIP 2021 could not exceed 75% of fixed base salary except for the CRO and CCO with a maximum cap of 100%.

The outcomes from EIP 2021 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 EIP 2021 outcome will be delivered in 2022. The remaining 60% will be paid out annually pro-rata over 5 years with 12% vesting each year. 50% of the EIP 2021 outcome is delivered in Nordea shares at each vesting event, which are further subject to 12-months’ retention.

Long-Term Incentive Programme

In 2021, the Board of Directors launched the Long-Term Incentive Programme 2021-2023 (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 and European 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.