Salaries of Pension Fund Executives to Decrease Skip to content

Salaries of Pension Fund Executives to Decrease

One of Iceland’s largest pension funds, Gildi, has announced that the salaries of its board members and highest-ranking executives will decrease by ten percent as of January 1, 2009. Other pension funds are allegedly planning to undertake similar measures.

According to Morgunbladid, the executives of the country’s largest pension funds earn an annual salary of between ISK 20 and 30 million (USD 175,000 and 262,000, EUR 136,000 and 204,000).

The highest-paid pension fund executive is Thorgeir Eyjólfsson, director of the Pension Fund of Commerce, who earns approximately ISK 30 million per year, or ISK 2.5 million (USD 22,000, EUR 17,000) per month.

Managing director of Gildi, Árni Gudmundsson, receives a salary of ISK 21.5 million (USD 188,000, EUR 146,000) per year. A ten percent cut to his annual salaries equals roughly ISK 2 million (USD 17,000, EUR 14,000).

According to Morgunbladid’s sources, the salaries of pension fund executives are not linked to the funds’ achievements.

The real yield of Iceland’s pension funds in 2007 differed, ranging from -0.8 percent to +2.4 percent.

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