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Ålandsbanken Abp
Remuneration Information • Feb 26, 2025
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Remuneration Information
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Compensation report for 2024 financial year
Bank of Åland Plc
Compensation report for 2024 financial year, Bank of Åland Plc
Introduction
This compensation report presents the compensation and economic benefits that were paid to the Board of Directors, Managing Director and Deputy Managing Director of the Bank of Åland Plc (Ålandsbanken Abp) during the 2024 financial year.
The report is drawn up in compliance with the Finnish Securities Markets Act, the Finnish Ministry of Finance ordinance on the compensation policy and compensation reports of share issuers and the reporting instructions in the Finnish Corporate Governance Code of 2025. The Bank of Åland's 2024 Annual General Meeting dealt with the Bank's compensation policy ("Compensation Policy") and approved it.
The Bank of Åland followed this Compensation Policy in the payment of compensation to management during 2024. The Bank did not diverge from the Compensation Policy or revoke any compensation.
The Bank's compensation system is compatible with the Group's corporate strategy, goals and values and is compatible with and promotes good and efficient risk management. The compensation system is designed in such a way that it does not run counter to the Group's long-term interests. An analysis is performed about how the compensation system affects the financial risks to which the Bank is exposed and the management of these risks. There must be an appropriate balance between fixed and variable remuneration. The Group's total remuneration for a specific earnings period must not build up and reward risks that may jeopardise the Group's long-term interests.
Compensation to the Board and Managing Director, compared to overall employee compensation and financial developments in the Bank of Åland Group during the past five financial years
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Board of Directors | 305,500 | 300,750 | 349,250 | 306,250 | 325,875 |
| Managing Director | 450,188 | 494,676 | 570,227 | 539,751 | 628,254 |
| Employees of the Bank of Åland Plc and its Swedish branch | |||||
| (on average) | 28,127,687 | 31,030,113 | 32,811,203 | 34,778,561 | 67,581 |
| Net operating profit (Group), EUR M | 39.7 | 49.2 | 46.1 | 61.7 | 65.0 |
| Return on equity after taxes, % | 11.6 | 14.0 | 12.8 | 17.2 | 17.9 |
Compensation to the Board of Directors during the 2024 financial year
| Board member | Annual fee | Fee for attending Board meetings |
Fee for attending Audit Committee meetings |
Fee for attending Compensation Committee meetings |
Total |
|---|---|---|---|---|---|
| Nils Lampi, Chairman | 36,500 | 16,000 | 6,000 | 2,250 | 60,750 |
| Christoffer Taxell, Deputy Chairman | 31,125 | 12,000 | 2,250 | ,,45,875 | |
| Karlsson Anders Å | 28,750 | 12,000 | 6,000 | 46,750 | |
| Leino-Haltia Mirel | 28,750 | 12,000 | 6,000 | 46,750 | |
| Lombardi Malin 1 | 21750 | 8,250 | 1,500 | 31,500 | |
| Valassi Ulrika | 28,750 | 12,000 | 8,000 | ,48,750, | |
| Wiklöf Anders | 28,750 | 12,000 | ,40,750 | ||
| Karlsson Agneta 2 | 4,750 | 4,750 |
1 Board member since March 26, 2024.
2 co-opted member, Chairman of the Compensation Committee until March 26, 2024.
No economic benefits related to employment and position were paid to Board members.
Compensation to the Managing Director and Deputy Managing Director for the 2024 financial year
In accordance with the Bank of Åland's Compensation Policy, the Managing Director and the Deputy Managing Director receive fixed monthly compensation plus variable compensation from
short-term compensation programmes based on achieving Group profitability levels plus personal targets. Variable compensation may not exceed an amount equivalent to 12 months of salary.
| Managing Director | Deputy Managing Director | |
|---|---|---|
| euro | euro | |
| Fixed Compensation that was paid in 2024 | ||
| Fixed annual salary | 431 267 | 302 294 |
| Fringe benefits | 11 280 | 11 243 |
| Variable compensation that was paid in 2024 1 | ||
| Variable compensation in cash | 92 854 | 66 359 |
| Variable compensation in shares | 92 854 | 66 359 |
| Total compensation | 628 254 | 446 255 |
| Deferred established variable compensation that will be paid in 2024 2 |
||
| Deferred variable compensation in cash | 263 206 | 183 156 |
| Deferred variable compensation in shares | 263 206 | 183 156 |
| Total deferred variable compensation | 526 412 | 366 313 |
1 Refers to 2023 variable compensation and deferred 2020 variable compensation paid in March 2024. Shares according to amount of taxed fringe benefits.
2 Refers to 2024 variable compensation (allocated variable compensation) that will be paid in 2025, deferred 2021 variable compensation that will be paid in 2026, deferred 2022 compensation that will be paid in 2027, deferred 2023 variable compensation that will be paid pro rata until 2028 and deferred variable compensation for 2024 that will be paid pro rata until 2029.
On March 13, 2024, the Managing Director subscribed for 2,565 and the Deputy Managing Director for 1,833 Series B shares in the Bank of Åland at a subscription price of EUR 36.20 per share as part of the Bank's incentive programme.
Incentive payments for the Managing Director and the Deputy Managing Director are divided into a maximum of 3/4 based on Group profitability and 1/4 on personal targets.
Allocated shares must be held for at least 12 months, a so-called vesting period, before the recipient of this compensation may access them.
On March 13, 2024, the Managing Director subscribed for 295 and the Deputy Managing Director for 214 Series B shares in the Bank of Åland at a subscription price of EUR 32.58 per share within the share savings programme launched for all Group employees in 2023. In addition, on October 24, 2024, the Managing Director subscribed for 313 and the Deputy Managing Director for 228 Series B
shares in the Bank of Åland at a subscription price of EUR 30.77 per share within the share savings programme launched for all Group employees in 2023. Employees can save a maximum of five per cent of their monthly salary in order to subscribe for twice-yearly targeted issues of Series B shares. Three years after each respective share issue, the Bank of Åland will distribute one free matching share for each share that has been acquired in the targeted share issues to those who have participated in these issues and who are still employed by the Group and own the shares that were issued. Employees will be offered the opportunity to subscribe for Series B shares at a price that is 10 per cent below the average price during the calendar month before each respective share issue.
The Managing Director is not entitled to a supplementary pension in addition to the statutory public pension. For the Deputy Managing Director, premium-based supplementary pension insurance with a retirement age of 70 years has been purchased.
Ålandsbanken Abp Street address: Nygatan 2, Mariehamn
Postal address: PB 3, AX-22101 Mariehamn, Åland, Finland. Telephone +358 204 29011. Fax +358 204 291 228. BIC AABAFI22 www.alandsbanken.fi [email protected]