At the Annual General Meeting of Arion Bank held on 17 March 2020 the Board of Directors was authorized to approve a share option plan and to enter into share option agreements with employees on buying shares in Bank in compliance with Article 10 of the Income Tax Act No. 90/2003. Share option agreements have now been concluded with employees in accordance with the approved share option plan. According to the plan the share option applies to all permanent employees of the Bank and the objective of the plan is align the interests of employees with the long-term interests of the Bank. 

According to the plan each option holder acquires the right to buy shares in Arion Bank for up to ISK 600,000 once a year for five years, starting in February 2022 and ending in February 2026. The purchase price is the average traded price in transactions with the company’s shares 10 business days before the agreement date, which is 3 February 2021, or ISK 95.5 a share.

A total of 628 employees entered into option agreements on up to 3,945,550 shares per year based on 100% exercise of share options.

This share option plan was confirmed by the Directorate of Internal Revenue on 15 December 2020 and is in compliance with Article 10 of the Income Tax Act No. 90/2003.

The share option plan of Arion Bank is attached, signed by the Directorate of Internal Revenue. (in Icelandic)