Stock grant to employees if Arion Bank IPO takes p

The board of directors of Arion Bank and a shareholders’ meeting have agreed that if shares in the Bank are offered for sale in a public offering in 2018, and the Bank is subsequently listed on a stock market, shares in the Bank will be granted to employees. A decision to list the Bank has not yet been taken, but preparations for a change in ownership are ongoing and an initial public offering and subsequent stock market listing is one of the options being considered. Arion Bank has approximately 850 employees in Iceland.  

If Arion Bank is listed on a stock exchange in 2018, each employee will receive shares in the Bank equivalent to one month's salary, up to a maximum of ISK 1 million, before income tax and other fees.  Employees would not be permitted to sell the shares for a period of two years after receiving them and employees who decide to leave the Bank during this period would have to return the shares without recompense. If the Bank is listed, the total cost to the Bank is estimated to be between ISK 600 million and ISK 700 million, approximately half of which is income tax and salary related costs.

The stock grant represents a bonus which will not be paid unless an IPO takes place and the Bank is listed in 2018, and the payment of this bonus will be deducted from other possible employee bonuses for 2018, where applicable. Bonuses to employees of financial institutions are governed by detailed rules set by the Financial Supervisory Authority (FME) and the bonus proposed here is in compliance with these rules and the FME has been informed.

Arion Bank is financially robust and is on a strong footing. The Bank is a market leader in Iceland as a developer of financial services and digital solutions and is committed to maintaining this position. The aim of the stock grant is to align the interests of employees with those of the Bank and to enhance employee engagement.

The proposed bonus is only intended for employees of Arion Bank, not its subsidiaries.

For further information please contact Haraldur Gudni Eidsson of Arion Bank's Communications division at haraldur.eidsson@arionbanki.is , or tel. +354 444 7108.