Avanza’s remuneration system and remuneration policy are structured in accordance with the requirements imposed by external regulations applicable to the operational spheres in which the Avanza Group companies operate. These regulations include, among others, the Swedish Financial Supervisory Authority’s regulations, Swedish and EU legislation, and applicable guidelines from EBA, ESMA and EIOPA.
Avanza’s remuneration policy is applicable to all entities and employees in Avanza. “Avanza” refers to Avanza Bank Holding AB (publ) and its subsidiaries Avanza Bank AB, Avanza Fonder AB and Försäkringsaktiebolaget Avanza Pension. The remuneration policy is adopted by the board of directors and is reviewed at least once a year and, additionally, when needed. The remuneration policy is available to all employees on Avanza’s intranet.
Avanza’s remuneration rules are structured to encourage good performances and to attract new employees. They shall, at the same time, counteract excessive risk-taking and conflicts of interest and shall promote sound and efficient risk management. The remuneration system is applicable to all employees and is applied gender neutral.
The fundamental principle of Avanza is that only fixed remuneration shall be applied, which also applies to the CEO and the executive management. Fixed remuneration shall be determined in advance for the work that the employee is employed to perform and shall reflect relevant professional experience and organisational responsibility, as stated in the employee’s contract of employment and job description.
Variable remuneration is applied restrictively and only a limited number of employees within a few departments are eligible to receive variable remuneration over and above their base salary. As a main principle, the variable remuneration payable to an employee per annum shall amount to a maximum of 50% of the fixed annual salary for the employee and it shall be possible to set the variable remuneration at SEK 0.
The variable remuneration is not pre-determined by amount or scale, and is determined for every individual employee based on quantitative and qualitative evaluation of performance in relation to set goals. The individual goals are linked to the overall goals of the department and the Avanza group, the employee's main tasks, and shall not encourage excessive risk-taking or conflicts of interest.
The total variable remuneration disbursed to Avanza’s employees may not be so sizeable that it limits Avanza’s ability to maintain an adequate capital base or, where necessary, to strengthen the capital base.
Avanza’s restrictive use of variable remunerations also include that Avanza does not apply variable remuneration that consist of discretionary pension benefits, that employees in control functions cannot receive variable remuneration, and that employees undertake not to use personal hedging strategies or insurance to undermine the risk alignment effects of a deferred variable remuneration being adjusted or revoked.
Every year, Avanza identifies employees whose professional activities have a significant impact on the relevant companies’ risk profile (risk takers) based on the requirements in external regulations such as the Swedish Financial Supervisory Authority’s regulations and EBA’s guidelines, and the risk analysis that is prepared annually.
Special regulations on the decision-making procedure and deferral of payment of any variable remuneration are applied for risktakers. Retained variable remuneration will only be disbursed to the employee when such disbursement is justifiable with due consideration for Avanza’s financial position and when it is motivated by Avanza’s and the employee’s results. Such remuneration may also be totally revoked. Furthermore, should it subsequently become apparent that a previous decision regarding variable remuneration to a risk taker was based on incorrect data, the decision shall be reconsidered.
The general meeting of each group company resolves on the remuneration to the board of directors of the relevant group company. The general meeting of Avanza Bank Holding AB (publ) also determines guidelines for remuneration to the group management.
The board of directors of each group company adopts Avanza’s remuneration policy and take measures for monitoring the implementation of Avanza’s remuneration rules. In addition, the board of directors resolve on remuneration to senior executives and employees with overall responsibility for any of the control functions in the group company.
The board of directors of Avanza Bank Holding AB (publ) has established a remuneration committee with the task of preparing board resolutions concerning remuneration in all group companies. The members of the committee, who cannot be part of the management of any of the group companies, shall have sufficient knowledge and experience in matters concerning risk management and remunerations to independently be able to assess the remuneration system’s suitability from a risk management perspective. In the preparation of board resolutions, the long-term interests of shareholders, investors and other stakeholders are taken into account.
Once a year, the remuneration committee conducts an assessment of Avanza’s remuneration policy and remuneration system, and prepare measures for monitoring the implementation of Avanza’s remuneration policy. The board of directors of each group company also supervises that the remuneration policy is applied and followed up.
Avanza’s risk control function conducts a risk analysis once a year. The risk analysis includes all risks that Avanza is or maybe be exposed to, including risks associated with Avanza’s remuneration policy and remuneration system. This risk analysis is used as basis for the board of director’s determination of which employees that are to be considered as risk takers and for the structuring of Avanza’s remuneration policy and remuneration system.
The internal audit function of Avanza performs a yearly audit of Avanza’s remuneration system and the system’s compliance with the remuneration policy. The result of the audit is reported to Avanza’s remuneration committee, to the audit, risk and capital committee, and to the board of directors.
For more information about Avanza’s remuneration, please see Avanza’s latest annual report and Pillar 3 report on information and risk management available at www.avanza.se/ir.
Below are also the Remuneration reports for Avanza Bank Holding AB, approved by the AGM.