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The Group's remuneration strategy

SEB aims to attract and retain ambitious employees who are eager to continuously develop, embrace new ways of working and contribute to the bank’s long-term success. Remuneration is part of the total offering that enhances SEB’s attractiveness as an employer. The overall ambition is to promote long-term commitment to creating sustainable value for customers and shareholders.

Remuneration structure

The bank’s remuneration structure consists mainly of base salary, variable remuneration, and pension and other benefits. 

Base salary

The base salary is the foundation of an employee’s remuneration. It shall be market aligned and reflect the requirements on the position and the employee’s long-term performance. SEB conducts annual equal pay reviews to identify and close potential gaps in terms of gender-neutral pay. The outcome of the review is published internally.

Variable remuneration

All variable remuneration is based on SEB’s risk-adjusted performance and is adapted to applicable rules governing the maximum share of an employee’s base salary, the deferred portion of remuneration, shares and fund units, and the right to withhold and reduce remuneration that has not yet been paid. For Identified Staff, variable remuneration may not exceed 100 per cent of their base salary.

The models for individual variable remuneration are based on financial and non-financial key performance indicators at group, unit and individual level, including an evaluation of the employees’ conduct. Non-financial goals take into account factors such as customer satisfaction, compliance and sustainability performance related to, for example, the bank’s own environmental impact and integration of sustainability risks into the business model. At the individual level, key parameters include compliance with rules and policies for risk-taking in the group, SEB’s Code of Conduct and the requirements on internal controls in the respective business area. Performance is evaluated over several years.

Remuneration policy

SEB’s remuneration principles and governance structure are laid out in the Remuneration Policy. The policy stipulates that remuneration shall be aligned with the bank’s strategy, goals, values and long-term interests and ensure that conflicts of interest are avoided. This shall build value for both SEB and the shareholders while promoting the best interest of the customers, encourage high performance and risk-taking that is aligned with the level of risk tolerance set by the Board of Directors, and sound and responsible behaviour based on SEB’s values.

An employee’s remuneration shall reflect the complexity, responsibility and leadership qualities required of the role as well as the individual’s own performance. SEB regularly evaluates employee performance and development based on transparent and individual financial and non-financial goals, among other things.

Employees in control functions shall be remunerated in a manner that is independent from the business areas they oversee, commensurate with their key roles, and based on goals that are compatible with their functions.

The policy lays out the principles for identification and remuneration of employees in positions with a material impact on the group’s risk profile (Identified Staff). This also applies for employees who can impact the risk profiles of mutual funds, who provide investment advice, or who have a material impact on what services and products are offered. In 2020, a total of 923 positions (984) were categorised as Identified Staff.

The policy also sets the requirements for all remuneration decisions, both in general and at the individual level. All decisions are to be approved at least at a level corresponding to the remuneration-setting managers’ manager (grandparent principle)