DNB lambasted for violating money-laundering rules – CEO received 80% of maximum bonus

Kjerstin R. Braathen - DNBPhoto: Terje Pedersen / NTB
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Several parties in the Norwegian parliament (Storting) reacted strongly to DNB CEO Kjerstin Braathen’s bonus in 2020. With a bonus of NOK 3.2 million, she earned NOK 13.7 million last year.

“It appears very tone-deaf that the board of DNB grants the CEO a fat bonus, the same year as they know they have to pay a large violation fee from Finanstilsynet,” Sivert Bjørnstad, FRP’s spokesman for business policy, told newspaper Dagens Næringsliv.

The chairman of the business committee, Geir Pollestad (Sp), also reacted, encouraging DNB to reduce the use of bonuses.

The bank’s chairman of the board, Olaug Svarva, says that it is understandable that people pay attention to top managers’ salaries.

“The board is concerned that DNB should not be a wage leader but competitive. Variable salary, half of which are shares with a fixed term, is a scheme that has broad support from shareholders. A fixed salary and nothing else would mean that the management is remunerated the same amount regardless of the results that are delivered,” Svarva said.

Compliance issues

She added that the board, due to too weak results in work with compliance, has decided to reduce variable parts of salaries for 2019 and 2020.

DNB CEO Kjerstin Braathen received a bonus of NOK 3.2 million in 2020. The bonus came in the same year as Finanstilsynet notified DNB of a violation fee of NOK 400 million after harsh criticism of the bank’s anti-money laundering work.

The bonus is added to the top of the fixed salary of NOK 7.9 million. Including a fixed salary supplement of NOK 2.4 million, Braathen’s total remuneration was NOK 13.7 million.

According to the bank’s information department, DNB CEO Kjerstin Braathen does not wish to comment on the matter.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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