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Glitnir Directors Receive Major Bonuses

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Glitnir Directors Receive Major Bonuses

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Photo: Geir Ólafsson.

Three board members of Glitnir Holdco ehf., along with a few Icelandic key employees of the company in Iceland, have already secured a total of ISK 875-1,525 million (USD 7.6 million, EUR 7 million) in bonuses, Vísir reports. That became clear after Glitnir paid out almost EUR 99 million (UDS 106 million) to Noteholders on January 19, an action which activated an extensive bonus system, approved at a shareholder meeting in March of last year.

Bonus payments to board members and other key directors of Glitnir are believed to increase even further, as additional payments to Noteholders are expected later in the year.

Icelandic directors of Glitnir, who are among the company’s key employees, have a right to receive more than 26 percent of the bonuses. That amounts to at least ISK 230-400 million (USD 2-3.5 million, EUR 1.9-3.2 million). The company’s Long Term Incentive Plan, LTIP, does not specifically name those people. If those bonuses are evenly divided among the company’s three key Icelandic directors, each one of them has now received between ISK 76 and 132 million (USD 0.66-1.1 million, EUR 0.6-1 million).

The majority of the bonuses, or 75.9 percent, will, however, be distributed to three foreign citizens, who are board members.

The thinking behind the bonus system is to make it profitable for key employees to sell the company’s assets as soon as possible and, thereby, complete the winding-up process of Glitnir. The faster the payments from the sale of Glitnir assets are distributed to creditors, the higher the bonuses to the company’s directors.

All Glitnir assets are expected to be sold by the end of the year, thereby completing the winding-up process.

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