1.1 The Remuneration Policy of Gildi Pension Fund is based on the Articles of Association of the fund and the principles on which Article 79(a) of Act No. 2/1995 on Public Limited Companies is based. The Remuneration Policy covers the remuneration of Board members, Managing Directors, key employees and other employees of the fund.
1.2 The objective of this Remuneration Policy is to support good governance in the operation of the fund. The Remuneration Policy is intended to consolidate the long-term interests of fund members, employees and other stakeholders in an orderly and transparent manner. It is the fund’s policy to offer board members, the Managing Director, key employees and other employees of the fund competitive benefits and a working environment in which there is reasonable consistency in the fund’s salary structure and that the remuneration policy supports the fund's investment, operational, and service objectives, i.a. so that it does not encourage excessive risk-taking and supports the fund's risk management, i.a. regarding sustainability risks.
1.3 Accepted equality and equal pay considerations must be considered when determining wages and working conditions. The fund has acquired equal pay certification, and care must be taken to maintain such certification.
2.1 The fund’s Annual General Meeting shall appoint a Remuneration Committee that submits a proposal for the Board’s wages before the annual meeting. In its proposals, the Committee shall take into consideration the responsibility, specialist knowledge, experience and the time that members need to spend on board member duties. The Committee shall present its proposals to the Board of Directors no later than two weeks before Gildi’s Annual General Meeting.
2.2 The Remuneration Committee must consist of at least three persons, i.e. the Chairman of the Board and one employee representative and one employer representative.
2.3 Gildi pays travel and accommodation costs for board members domiciled outside the Greater Reykjavík Area.
3.1 In accordance with the Articles of Association and Rules of Procedure of the Fund’s Board, wages and other employment terms must be stated in the Managing Director’s written employment contract. The Fund’s Board of Directors recruits and dismisses the Managing Director, but the Board may appoint the Chairman and Vice-Chairman to reach agreements with the Managing Director as regards wages and employment terms as per the Rules of Procedure of the Board.
3.2 Fixed wages shall be in accordance with what is the norm within the operating environment of the Managing Director of the fund and in accordance with the scope, responsibility and professional achievement of their work. Payments to a pension fund, leave, benefits and provisions on notice periods must be stated in the employment contract.
3.3 As a general rule, there are to be no further payments on termination of employment other than those stated in the employment contract.
4.1 The Managing Director is responsible for the daily operation of the fund and the recruitment of staff according to the fund’s Articles of Association.
4.2 When recruiting key employees, the Managing Director shall discuss the matter with the Chairman and the Vice-Chairman of the fund’s Board of Directors.
4.3 When determining the remuneration of key employees, the same points of view as stated in Article 1.2 must be considered. Any discrepancies are to be submitted to the Chairman and Vice-Chairman of the fund’s Board of Directors.
5.1 The Managing Director is responsible for the daily operation of the fund and the recruitment of staff according to the fund’s Articles of Association. The fund’s Office Manager is also responsible for hiring employees other than the fund’s key employees.
5.2 When determining the remuneration of employees, the same points of view as stated in Article 1.2 must be considered. Any discrepancies are to be submitted to the Chairman and Vice-Chairman of the fund’s Board of Directors.
6.1 The fund shall ensure that professional liability insurance is in force at all times for the board members, Managing Director and other key employees of the fund, both current and former, due to their work for the fund. The fund must ensure the indemnification of claims that may be imposed on them or which may result from their work for the fund to the extent that such claims are not due to the culpable act of the party in question that can be attributed to intent or gross negligence.
6.2 The fund pays insurance premiums for professional risk and normal defence costs in the event of claims or investigations of the above nature, reserving the right to recourse in the event that later information is found that the person in question had, in the case in question, been found to have caused the event intentionally or through gross misconduct violated their obligation of confidentiality with respect to the fund or the provisions of law respecting thereto.
7.1 The fund’s Annual Financial Statements are to state the terms of employment of Board members, the Managing Director and the key employees that are subject to the provisions of the regulation on pension fund’s financial statements as in effect each time.
7.2 The Remuneration Policy shall be published in the Annual Report and on Gildi’s website.
8.1 The Remuneration Policy shall be approved at the fund’s AGM with or without amendments.
8.2 In the event that the Remuneration Policy is deviated from in significant aspects, the Board of Directors shall enter such deviations in the minutes together with reasoning thereto. Such deviations must be reported at the fund’s next AGM.
Approved at the fund's annual meeting on April 24, 2024.