Corporate governance is defined as the framework by which the Company is directed and controlled and the means by which relationships between the Company's management, its board of directors, and its shareholders are conducted. The corporate governance defers to the provisions of law, the Company’s articles of association and general securities regulations.
Icelandair Group holds the view that well functioning Corporate Governance principles are essential for assuring shareholders and other stakeholders that the Company is doing its best to ensure sound and effective control of the Company's affairs and a high level of business ethics. Exercising good Corporate Governance will, in the long run, build a solid Company returning shareholders satisfactory profits on their investment. Corporate Governance serves to ensure an open and transparent relationship between the Company's management, its Board of Directors, its shareholders and other stakeholders.
In 2009, the Iceland Chamber of Commerce, the Iceland Stock Exchange and the Confederations of Icelandic Employers issued guidelines on Corporate Governance. These guidelines along with the articles of associations, and rules for Issuers of Securities listed on the OMX Nordic Exchange make up the framework for Icelandair Group Corporate Governance practices.
It is the opinion of the Board of Directors that Icelandair Group complies in all main respect with the Icelandic guidelines for Corporate Governance. The Company however does not have a Nomination Committee as the Board of Directors has not seen the need for it. That decision will however be reconsidered in 2012.
The Iceland Chamber of Commerce, the Confederation of Icelandic Employers and the Center for Corporate Governance at the University of Iceland awarded Icelandair Group as "Exemplary in Corporate Governance" in 2013. Icelandair Group is the first listed company in Iceland to receive that recognition.