The Bank announced the implementation of a share option plan on 9 February 2021. The Bank´s Annual General Meeting on 16 March 2021 authorised the Board of Directors to amend the Bank´s share option plan in line with changes made to Article 10 of the Act on Income Tax, no. 90/2003. The legislative changes raised the maximum allowed purchase amount from ISK 600,000 to ISK 1,500,000 annually. The share option plan applies to all permanent employees of the Bank and the objective of the plan is to align the interests of employees with the long-term interests of the Bank.

The amended share option plan allows each employee to purchase shares in the Bank for a maximum amount of ISK 1,500,000 annually, starting in 2023 and ending in 2026. Share option agreements have now been concluded with all permanent employees of the Bank in line with the amended share option plan. Employees, who were already participant in the share option plan, entered into share option agreements for the maximum purchase amount of ISK 900,000 and other employees for the maximum purchase amount of ISK 1,500,000. The purchase price in the agreements is the weighted average traded price in transactions with the company’s shares 10 business days before the agreement date, which is 10 February 2022, or ISK 181.7 per share.

A total of 669 employees entered into option agreements in February 2022 on up to 3.756.192 shares per year based on 100% exercise of share options.

The amended share option plan was confirmed by the Directorate of Internal Revenue on 14 December 2021 (attached in Icelandic).