If you want to give some sound advice to a son or daughter joining the job market, tell them to get a job at Sweden’s Handelsbanken. Anyone smart enough to have done that 35 years ago – whether as a manager or as a receptionist – is looking at a retirement nest egg of €1m on top of their pension, regardless of their status. The bank’s policy is that every time it achieves its target return on equity (ROE) the staff foundation loads up on shares.
This compensation policy is only one example of a unique Nordic banking business model that ties staff, customer and shareholder interests together admirably and has delivered magnificent rewards to all parties over the past few decades.