Gildi publishes report on the implementation of its shareholder policy for 2026

Gildi has published its report on the implementation of its shareholder policy for 2026 on its website. The policy applies to listed companies in which the fund holds a significant stake. The report covers Gildi’s main priorities as a shareholder during the year, the comments the fund made in its dialogue with companies, and the priorities set for 2027.

Key issues in 2026

Ahead of annual general meetings, Gildi requested meetings with relevant companies to discuss the meeting agendas and the companies’ corporate governance. Fund staff also met with those nomination committees that offered meetings with shareholders. Based on this work, the fund supported the proposals put before shareholders’ meetings in most cases.

Nevertheless, there were instances where the fund did not consider it appropriate to support individual proposals and made comments to explain its position. In those cases, the fund abstained or voted against the proposals in question. The report reviews the main such cases, in which remuneration policies, capital structure and board composition were prominent. Among other things, the fund voted against or abstained on the remuneration policies of several companies where it considered the information and reasoning behind them to be insufficient. It also opposed, for example, an unclear design of a share option plan, as well as open-ended and unconditional authorisations for boards to increase share capital or buy back shares.

“Dialogue with company representatives ahead of annual general meetings allows us to review the proposals in more detail, discuss important matters that concern shareholders and present our views. In most cases we support the proposals that boards put before annual or shareholders’ meetings, but where we believe there is room for improvement, we make comments and explain our position,” says Davíð Rúdólfsson, CEO of Gildi.

Davíð Rúdólfsson, CEO of Gildi Pension Fund

Priorities for next year

Among other things, the report discusses Gildi’s priorities for 2027 and the matters the fund intends to follow up on in its dialogue with listed companies. The main priorities are summarised below:

Well-designed incentive schemes

Gildi emphasises that remuneration policies should be clear and based on appropriate metrics. Management incentive schemes should be reasonable and reflect the long-term interests of the companies.

In the fund’s view, long-term incentive schemes based solely on extensive share option programmes are generally not the best way to align the interests of shareholders and management over the long term. Where a share option scheme is used, the fund considers it important that it is tailored to the company’s operations and that options are granted regularly in moderate tranches rather than in a single large allocation.

More open dialogue with nomination committees

The fund encourages nomination committees to engage in more open dialogue with shareholders and to explain adequately why a particular board composition is being proposed.

Good business practices

In its role as an owner, Gildi seeks to promote responsible business practices guided by long-term interests. The fund also emphasises that the companies it invests in should engage in active and healthy competition, while always taking care to respect the appropriate division of roles between shareholders, the board and management.

“Incentive schemes can be a good way to align the interests of management and shareholders, but they need to reflect the company’s operations and be based on results that management can genuinely influence. Company boards therefore need to pay careful attention to how such schemes are designed,” says Davíð Rúdólfsson.

Report on the Implementation of the Shareholder Policy 2026*

*Please note that the report is in Icelandic.

Cover of the Report on the Implementation of the Shareholder Policy 2026