Compensation Report

Board compensation

Compensation to the Board of Directors is decided at the Annual General Meeting. For 2007, the agreed annual fee was £25,000 for each Board member (including the Chairman).

Severance payments

No severance payment was made to any person giving up their function on the Board during 2007.

Options, warrants or other rights

No options, warrants or other rights were granted during 2007, and no member of the Board or other Directors holds such rights.

Loans to members of the Board

There are no outstanding guarantees, loans, advances or credits to members of the Board or other Directors.

Share allotment 

No shares were allotted to members of the Board or other Directors in 2007 and there are no programmes for share allotment in place.

Besides compensation, some Board members have been involved in commercial trading with Bakkavör Group: Katsouris Brothers Ltd. (chaired by Panikos J. Katsouris) has supplied Katsouris Fresh Foods with raw materials. Panikos J. Katsouris is also in control of buildings rented by the Group. The Group rents office space from Tjarnargata 35 ehf., which is owned by Ágúst Gudmundsson, CEO, and Lýdur Gudmundsson, Chairman of the Board of Bakkavör Group hf. Furthermore, the Group also rents office space from Exista Properties, owned by Exista hf., and the Group rents office space to Exista UK. All such transactions are based on arm’s length principles and are not considered to be part of the Board’s compensation.