Sweden had called for the bank to discontinue variable compensation programmes and bonuses for top executives. But in a proposal presented ahead of its March 25th AGM, Nordea’s board has ignored the government’s wishes.

Instead, the board is to issue new guidelines proposing that bonuses should in general not exceed 35 percent of fixed salaries. Variable compensation is to be used as a means of “rewarding in advance goal-orientated achievements.”

The government also urged Nordea not to include top executives in its long-term bonus scheme. But here too the board chose to disregard the government’s stance.

The long-term programme put forward by the board encompasses some 400 leading figures in the bank.

Sweden own 19.9 percent of shares in the regional banking giant.

As The Local reported last week, Nordea reported an operating profit of €592 million ($815 million) for the final quarter 2009, down on a profit of €781 million in the corresponding period last year.