Nordea distributes record bonuses
Investment personnel get EUR 212 million
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Nordea, the largest bank in the Nordic Countries, is paying out a record EUR 278 million in bonuses, primarily for those working in investments.
The incentives mainly involve employees working in capital markets and investment banking operations, as well as a few hundred property managers, whose bonuses added up to EUR 212 million.
The move doubles the annual pay of some of the investment professionals, some of whose bonuses are in the hundreds of thousands of euros. Ordinary bank employees are also getting bonuses for last year’s work amounting to EUR 3,200 or less.
Nordea decided to raise the bonuses of its investment department by 25 per cent from the 2008 level of EUR 170 million, even though the bank’s profit declined by nine per cent last year. Reports on the higher bonuses have raised controversy in Sweden.
Nordea’s top management, including Director General Christian Clausen, have faced criticism over the bonuses at a time in which national governments have offered to guarantee the continuity of banking activities.
Deputy CEO Ari Kaperi said on Wednesday that he and six other members of the board decided not to take any bonuses because of the critical debate over the matter.
In addition there was an agreement with the Swedish state to cut bonuses after the state took part in a Nordea share issue last year.
“In addition, some of those who received bonuses will have to postpone collecting the part of the money by three years. Last year there were 50 people behind such a time lock, and this year there are about 100", Kaperi says.
In announcing the bonuses on Wednesday Nordea was at pains to explain why it felt that such opulent bonuses were necessary.
According to the bank, it cannot “significantly deviate from international market practice”, because of the heavy international competition over professional investors.
Nordea points out that the investors brought the bank three billion euros in earnings last year.
Helsingin Sanomat
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| 11.2.2010 - TODAY |
 Nordea distributes record bonuses |
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