Responsibilities and methods of determining compensation
The Group Nomination & Compensation Committee (see Corporate governance) advises the Board of Directors in all aspects concerning compensation and provides support in particular with the following aspects:
- Compensation policy: makes recommendations for the stipulation of principles and also for the establishment of regulations concerning the compensation policy of the members of the Board of Directors, the Group Executive Board and the other employees;
- Compensation proposals: makes proposals regarding the compensation of the members of the Board of Directors, the Group Executive Board and the Head of Group Internal Audit;
- Annual review of regulations: reviews Group regulations that have a bearing on its compensation policy;
- Annual review of compensation: reviews the compensation of the Board of Directors and the Group Executive Board, the Head of Group Internal Audit as well as senior executives in risk management and compliance in accordance with the relevant regulations.
The full Board of Directors approves the decision-making principles and regulations governing compensation and specifies annually the compensation for its members and the members of the Group Executive Board. The decision is made at the discretion of the Board of Directors and is based on their duties and function as well as on their relevant professional experience and organisational responsibility. The amount of variable compensation of the Board of Management 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 Board of Management. 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 Liechtensteinische Landesbank, the Board of Directors informs the Government about its compensation.
The compensation report with the total compensation of the Board of Directors and the Group Executive Board is presented to the General Meeting of Shareholders as a part of the annual report. There is no advisory vote on compensation.