Swedbank cancels variable remuneration for 2009

Press Release January 27, 2010

Swedbank cancels variable remuneration for 2009

The Board of Swedbank has decided to cancel variable remuneration for 2009,
where employment contracts give the bank a discretionary right to decide on such
remuneration. This decision will result in the reversal of provisions for
accrued variable remuneration, which up until the third quarter amounted to SEK
406 million.


2009 was an exceptional year for the financial industry. The financial crisis
triggered regulatory interventions around the world in order to guarantee the
stability of the financial system. In Sweden, the government has guaranteed the
stability of the financial system and the shareholders have contributed through
strengthening the balance sheets of the banks. For Swedbank 2009 was a uniquely
challenging year with significant losses and a second rights issue.

Swedbank has during 2009 taken a number of actions in order to build a bank
sustainable for the long term. The measures taken by the bank's management
during 2009, and will continue taking, is part of the strategic efforts aimed at
rebuilding the trust in Swedbank. 

Against this background, the Board has decided to cancel variable remuneration
for 2009, other than situations where such a decision would violate employment
contracts. Together with the previous reversal of accrued provisions for
variable remuneration during 2009 in Baltic banking, total variable remuneration
for 2009 is estimated to be SEK 17 million.  

“This is a unique decision in the light of the bank's losses and government
efforts, and should not be interpreted as a signal that we have changed our view
regarding the basic principles for the bank's remuneration system. There is
still a strong consensus that a system combining fixed and variable remuneration
is the most efficient system to create value for customers and shareholders in
the long term. However, going forward we will emphasize the long-term component
of the total remuneration”, says Michael Wolf, CEO of Swedbank.

The decision is a result of many complex considerations. At first glance it
might appear as a simple decision to cancel variable remuneration during a year
when the bank is reporting substantial loan loss provisions. But our mission is
to protect the shareholders' investment and to safeguard the bank's
competitiveness, both in the short-term and the long-term perspective”, says
Carl Eric Stålberg, Chairman of the Board.


Further information, please contact:
Thomas Backteman, Executive Vice President Corporate Affairs, Swedbank, phone:
+46 708 311 166
Anna Sundblad, Press Manager, Swedbank, phone: +46 70 321 39 95 

 
1. 
Reversal of accrued provisions for 2008, Baltic Banking -197 SEK million
Non-cancellable variable remuneration for 2009, 214 SEK million
Variable remuneration, net	17 SEK million