Responsibilities and method of determining compensation

The Group Nomination & Compensation Committee (see point 3.5.2 “Composition of all Board of Directors committees, their tasks and terms of reference”) advises the Board of Directors in aspects concerning compensation. Its tasks include:

  • the formulation of recommendations for the stipulation of principles and the establishment of principles and regulations for the compensation policy concerning the members of the Board of Directors, the members of the Group Executive Board and the other employees of the bank for submission to the Board of Directors;
  • the formulation of proposals for the compensation of members of the Board of Directors, the members of the Group Executive Board and the Head of Group Internal Audit for submission to the Board of Directors in accordance with existing principles and regulations;
  • the annual review of the Group regulation “Compensation standards”, the LLB AG regulation of the same name as well as the Group regulation “Fit & Proper – Assessment of members of the Board of Directors, the Board of Management, the Head of Group Internal Audit and of key function holders” for submission to the Board of Directors;
  • the annual review of the compensation of the members of the Board of Directors and the members of the Group Executive Board, the Head of Group Internal Audit and senior executives in risk management and compliance pursuant to the Group regulation “Compensation standards” and the LLB AG regulation of the same name for submission to the Board of Directors in accordance with existing principles and regulations;
  • the annual taking note of the compensation of all LLB AG staff who are covered by the Group regulation “Compensation standards” and the LLB AG regulation of the same name.

The Board of Directors “in corpore” approves the principles and regulations governing compensation and specifies the amount of the compensation for the members of the Board of Directors and the Group Executive Board, which reflects their professional experience and the organisational responsibility they bear in the company. The decision regarding the amount of the compensation of the members of the Board of Directors and the Group Executive Board is made at the discretion of the Board of Directors and is based on their duties and responsibilities. The amount of variable compensation of the Executive Board is dependent on the individual fixed compensation from the compensation model. The Chairman of the Group Executive Board has a right of proposal concerning the compensation of the other members of the Executive Board. The members of the Group Executive Board are not present at the discussion and the decision concerning the amount of their compensation.

Pursuant to art. 12, para. 2 of the Law on the Liechtensteinische Landesbank, the Board of Directors must inform the Government about the compensation ruling specified for it. The Liechtensteinische Landesbank does not submit the total compensation of the Board of Directors and the Group Executive Board to the General Meeting of Shareholders for approval. It also does not hold an advisory vote on the question of compensation.