At Arion Bank we constantly look to update our corporate governance framework in response to new events, changes in statutory law and developments in domestic and international standards.

Statement

The Corporate Governance Statement of Arion Bank hf. (Arion Bank or the Bank) is based on the legislation, regulations and recognized guidelines in force when the Bank's annual accounts are adopted by the Board of Directors.

This statement is prepared in accordance Act No. 161/2002, on Financial Undertakings, and Guidelines on Corporate Governance, 6th edition, issued by the Icelandic Chamber of Commerce, NASDAQ OMX Iceland hf. and the Confederation of Icelandic Employers in February 2021.

 
Below is a gap analysis between the Icelandic legal framework and Swedish Corporate Governance Code.

Policies

The main objective with regard to employee remuneration is that Arion Bank offers competitive salaries so that the Bank is able to attract and retain outstanding employees. The Bank’s objective is also to ensure that jobs at the Bank are sought after by qualified people. When devising a remuneration policy it must be ensured that the policy does not encourage excessive risk taking but rather supports the Bank’s long-term goals and its healthy operation. The policy is an integral part of the Bank's strategy to protect the long-term interests of the Bank’s owners, its employees, customers and other stakeholders in an organised and transparent manner.

In accordance with Article 79a of Act no. 2/1995 on Public Limited Companies and rules on good corporate governance, the Board of Directors of Arion Bank approves the Bank’s remuneration policy with respect to salaries and other payments to the Board Directors, Chief Executive Officer, Managing Directors, Compliance Officer and Internal Auditor.

The remuneration policy is reviewed annually and submitted to the annual general meeting for approval or rejection.