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Nordea bank ignores Swedish bonus ban

TT/The Local · 17 Feb 2010, 16:12

Published: 17 Feb 2010 16:12 GMT+01:00

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Sweden had called for the bank to discontinue variable compensation programmes and bonuses for top executives. But in a proposal presented ahead of its March 25th AGM, Nordea's board has ignored the government's wishes.

Instead, the board is to issue new guidelines proposing that bonuses should in general not exceed 35 percent of fixed salaries. Variable compensation is to be used as a means of "rewarding in advance goal-orientated achievements."

The government also urged Nordea not to include top executives in its long-term bonus scheme. But here too the board chose to disregard the government's stance.

The long-term programme put forward by the board encompasses some 400 leading figures in the bank.

Sweden own 19.9 percent of shares in the regional banking giant.

Story continues below…

As The Local reported last week, Nordea reported an operating profit of €592 million ($815 million) for the final quarter 2009, down on a profit of €781 million in the corresponding period last year.

TT/The Local (news@thelocal.se)

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Your comments about this article

16:50 February 17, 2010 by conboy
Simple solution to this the Government should use it's interest in Nordea to ditch the freeloaders on the board!
17:01 February 17, 2010 by eZee.se
And for those of us who have accounts in Nordea:

time to withdraw... starve the greedy bastards
17:42 February 17, 2010 by GefleFrequentFlyer
What the idiot MPs don't understand is, variable pay (what they see as bonuses) make up a large part of most bankers salaries, regardless of position, or what country they work in. The contrary is, the fixed salary is small.

Same concept applies to a conmpany paying dividends to it's shareholders. How DARE they take extra money when thier business succeeds!?!?!?! Time to declare dividends illegal! Money grubbers!

This rife populist rancor directed at corporations and inviduals who commonly associated with large sums of money is nauseating.
18:02 February 17, 2010 by Nemesis
Simple solution.

105% tax on bonus's and a tax investion of all assets of all bank employee's.
22:32 February 17, 2010 by reason
Perhaps they should put the money into giving their customers some interest? I left Nordea last year because they consistently charge more and give less with, at best, no better service than other banks.

Savings accounts:

Nordea 0.00 %, SEB 0.10 %, Länsförsäkringar 0.15 % (ok, nobody gives a lot these days, but even a little counts when compared to nothing)

Five year fixed interest:

Nordea 2.71%, Länsförsäkringar 3.35 %, SEB 4.40 %
11:25 February 18, 2010 by jose_s
what is the reason for a bonus? i thought it was for doing an exceptional job. how much money did they lose this year? how much money would they get if they actually did their job right?
15:51 February 18, 2010 by calebian22
"Nordea reported an operating profit of €592 million ($815 million) for the final quarter 2009, down on a profit of €781 million in the corresponding period last year."

Seems like bonuses are not out of order. If a business is profitable, what is wrong with having bonuses? Bonus packages that are automatic (Like the AIG bailout in the US) and not based on profit is bs, but it seems like in this case they are warranted.
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