The principles of Íslandsbanki's Compensation Policy reflect the Bank's objectives of a sound governance process and long-term value creation for the Bank´s shareholders.
Remuneration of the Board of Directors
Íslandsbanki's Board Directors receive a fixed monthly payment and are not covered by any type of incentive- or performance-based remuneration. The remuneration amount is approved by the Annual General Meeting. The remuneration of a director reflects the competencies and contribution required in view of the responsibilities and the number of board meetings.
Remuneration of the Executive Board
Executive Board members are employed on a contractual basis. It is the Bank's stated objective to attract and keep highly qualified and ambitious staff and this goal is reflected in the remuneration of the Executive Board which consists of a fixed salary and pension. Performance based remuneration system that complies with the FME’s rules on remuneration is in place for members of the Executive Board. No part of the Executive Board members' salary or performance based remuneration is in the form of shares or related derivatives.
The Board Corporate Governance, Compensation Committee and Human Resources Committee annually monitors trends in the Bank's salaries, including the remuneration of Executive Board members. The Committee reports to the full Board of Directors and makes preparations for the Board's consideration of remuneration issues.
The actual remuneration of members of Íslandsbanki's Board of Directors and Executive Board is disclosed in the Bank's annual financial accounts.