Despite the fact that Icelandair Group lost ISK 13.7 billion last year, the salary of the company’s CEO increased by almost half during the year, Kjarninn reveals with reference to Icelandair data. Icelandair Group has received billions from public funds to get through the epidemic and more funding from the government than any other company in Iceland because of this.
CEO of Icelandair Group Bogi Nils Bogason received USD 518,000 in salary and benefits last year. At the year-end exchange rate of 2021, it is ISK 67.5 million or ISK 5.6 million per month. In addition, Bogi Nils received USD 119.6 thousand in pension payments or ISK 15.6 million at the above exchange rate. This means that his salary, benefits and pension payments last year totalled ISK 83.1 million, or just over ISK 6.9 million on average per month. This is stated in the annual accounts of Icelandair Group, which were published last week. Bogi’s salaries increased significantly between years. He had a salary of 355 thousand US dollars in the year 2020 and then received 76 thousand US dollars in pension fund payments from the company. When these figures are converted into Icelandic kronas at the end of last year’s exchange rate, they mean that Bogi’s salary and benefits were ISK 46.3 million in 2020, or almost ISK 3.9 million per month, and the pension fund payments a total of ISK 9.9 million. In total, Bogi’s salaries, benefits and pension fund payments in the year 2020 were, therefore, ISK 56.2 million compared to the year-end exchange rate in 2021, or ISK 4.7 million per month.
Bogi’s salaries, benefits and pension fund payments, therefore, increased by 48 percent, or almost half, in US dollars between years. Kjarninn sent an inquiry to Icelandair Group regarding the matter and asked for an explanation of the CEO’s salary increase. In its response, the company’s information officer says that the change can be “largely attributed to the fact that in 2020 the CEO took on a 30 percent pay cut for most of the year. It should be noted in this context that the company’s annual accounts are in USD, but all salaries in Iceland, including the CEO, are paid in Icelandic kronas. The average exchange rate of the Icelandic krona against the USD strengthened between years, which exaggerates the increase in the annual accounts. “
The report of the Icelandair Group’s nomination committee, published on the Iceland Stock Exchange yesterday, 7.February, states that it is a persistent risk for the company that key employees will resign as they are not paid well enough for their jobs, and three of Icelandair Group’s top managers have resigned since the last annual general meeting. In interviews with the committee, the company’s management and board members stated that they felt the need for a “stronger retention plan together with a revised remuneration structure for senior management”.