Management
AS LHV Group is the largest domestic financial group and capital provider in Estonia
LHV was established in 1999, relying on the long-term investment and business experience of its founders. LHV employs over 380 people. LHV offers banking services to more than 151,000 customers, and LHV’s pension funds over 178,000 customers.
Strategy
LHV’s mission is to help raise Estonian capital. LHV’s vision is focused on Estonia where people and businesses dare to think big, engage in enterprise and invest in the future.
LHV values: simple, supportive, effective.
Long-term objectives of LHV
- To be the best financial services provider for private individuals who are accumulating and investing in financial assets and companies in need of financing.
- Be an attractive and recognised employer that offers development, self-actualisation and growth.
- Conduct business so that the annual rate of return on equity committed reaches 20% of the pre-tax profit.
- To be the most inclusive financial services provider for international financial intermediaries.
- To become Estonia’s most valued publicly traded company.
LHV is the perfect place for safeguarding and growing your savings
LHV focuses on active and independent customers with an enterprising frame of mind. For private customers, LHV mainly offers services related to the safeguarding and enhancement of savings. For business customers, LHV offers smart, flexible financing, along with the management of daily financial affairs.
LHV’s products and services are simple, transparent and relevant. Modern-day electronic means of communication are used for customer communication. This allows to cut costs with the aim offering affordable prices for the everyday services of LHV.
Partnership is central to growing the business of LHV. New initiatives can be implemented much faster and more successfully if the parties involved have the same interests and each other’s long-term support. LHV is a publicly traded company. LHV would like as many clients and partners as possible to be shareholders and investors in LHV and to participate in the building of a shared business.
Supervisory Board
Rain Lõhmus
Chairman
Rain Lõhmus is the founder of LHV. Rain serves as a member of the supervisory boards of AS LHV Pank, AS LHV Finance and AS Arco Vara, and as a member of the management boards and supervisory boards of several other companies. Rain has graduated from the Tallinn University of Technology and completed the MBA programme in Harvard Business School. He is also a member of the Estonian Business Association.
Rain Lõhmus and persons related to them (Lõhmus Holdings OÜ, OÜ Merona Systems) own a total of 6,478,005 shares, which is 24.9% of all shares.
Andres Viisemann is the founder of LHV and the manager of LHV's pension funds. Andres serves as a member of the supervisory boards of AS LHV Pank, AS LHV Varahaldus and AS Fertilitas, and as a member of the management boards and supervisory boards of several other companies. Andres has graduated from the University of Tartu, and has acquired an MBA degree in international business management in INSEAD.
Andres Viisemann does not hold any shares of AS LHV Group. The individuals associated with him (Viisemann Investments AG, Viisemann Holdings OÜ) own a total of 2,549,308 shares, which accounts for 9.8% of all shares. Andres Viisemann has the right to acquire a total of 34,505 shares of AS LHV Group based on options issued in 2016, 2017 and 2018.
Tiina Mõis is the owner and managing director of AS Genteel. Tiina is a member of the Supervisory Board of AS LHV Pank, AS Baltika and several other companies. Tiina has graduated from the Tallinn University of Technology.
Tiina Mõis does not hold any shares of AS LHV Group. AS Genteel holds 999,456 shares of AS LHV Group.
Heldur Meerits is the owner of and member of the Management Board of AS Amalfi. Heldur serves as a member of the supervisory boards of AS LHV Pank and Kodumaja AS, and as a member of the management boards and supervisory boards of several other companies. Heldur has graduated from the Faculty of Economics and Business Administration of the University of Tartu, and serves as a member of the supervisory boards of the Dharma Foundation, Tähelaps Foundation and several other foundations.
Heldur Meerits does not hold any shares of AS LHV Group. AS Amalfi holds 951,978 shares of AS LHV Group.
Raivo Hein is the owner of and member of the Management Board of OÜ Kakssada Kakskümmend Volti. Raivo serves as a member of the Supervisory Board of AS LHV Pank, and as a member of the management boards and supervisory boards of several other companies. Raivo has graduated from the Tallinn University of Technology.
Raivo Hein does not hold any shares of AS LHV Group. OÜ Kakssada Kakskümmend Volti holds 490,190, Lame Maakera OÜ holds 3670 shares and Astrum OÜ holds 250 shares of AS LHV Group.
Tauno Tats is a member of the Management Board of Ambient Sound Investments OÜ. Tauno serves as a member of the Supervisory Board of EfTEN Kinnisvarafond AS, and as a member of the management boards and supervisory boards of several other companies. Tauno has graduated from the Tallinn University of Technology.
Tauno Tats does not hold any shares of AS LHV Group. Ambient Sound Investments OÜ holds 1,595,620 shares of AS LHV Group.
Sten Tamkivi is a member of the Management Board of Teleport Technologies OÜ. He serves as a member of the Supervisory Board of ASI Private Equity AS and as a management board member of other companies. Sten Tamkivi graduated from the Stanford University Graduate School of Business. He serves as a member of the Supervisory Boards of Kistler-Ritso Eesti SA.
Sten Tamkivi holds 355 and Seikatsu OÜ holds 1,825 shares of AS LHV Group.
Management Board
Madis Toomsalu serves as the supervisory boards of AS LHV Pank and AS LHV Varahaldus. He is member of the Management Board of MTÜ Finance Estonia. He has previously served as Head of Credits and chairman of the Credit Committee in LHV Bank. Toomsalu has obtained a bachelor’s degree in business management from Tallinn University of Technology in 2009 and a master’s degree in 2011 in public sector finance.
Madis Toomsalu owns 24,397 shares of AS LHV Group. Madis Toomsalu has the right to acquire a total of 46,979 shares of AS LHV Group based on options issued in 2016, 2017 and 2018.
Committees
Audit committee
The Audit Committee serves, above all, as an advisory body for the Supervisory Board in matters related to accounting, audit, risk management, internal control and internal audit, supervision, budgeting and compliance. The Audit Committee must be set up of at least three members.
The Audit Committee is charged with the task of monitoring and analysing
- the processing of financial information within the scope required for the preparation of quarterly reports and the Annual Report;
- the efficiency of risk management and internal control;
- the audit of the financial statements or the Consolidated Annual Report, and
- the independence of the audit firm and the authorised auditor representing the audit firm by law, and compliance with the requirements established in the Auditors Activities Act.
The Audit Committee is obliged to make proposals and recommendations to the Supervisory Board with regard to:
- appointment or removal of the audit firm;
- appointment or removal of the internal auditor;
- prevention and elimination of problems and inefficiencies within the organisation, and
- ensuring compliance with legal acts and best professional practice.
Kristel Aarna has worked as the CFO at Viasat AS since 2011, prior to which she served as the Chief Controller of Baltic operations at Swedbank. Previously, she was employed as the Head of Financial Advisory Services at KPMG Baltics and has also worked at Eesti Pank and for the CVS Caremark Corporation. Aarna has a Bachelor’s level degree in Economics from the University of Tartu and an MBA in Finance from the Bentley University Graduate School of Business.
Kristel Aarna does not hold any shares in AS LHV Group.
Urmas Peiker works as the Head of Business Development at Estonian start-up Funderbeam. From May 2013 to October 2014, Peiker was the Head of Compliance at LHV Pank. Previously, Urmas Peiker has also worked as the Head of the Market Surveillance Department at the Financial Supervision Authority, in the European Reconstruction and Development Bank, Morgan Stanley, and Estcap Ltd. Peiker has a Bachelor’s level degree in Law from the University of Tartu and an MBA in Law from the Duke University School of Law.
Urmas Peiker does not hold any shares in AS LHV Group.
Tauno Tats is a member of the Management Board of Ambient Sound Investments OÜ. Tauno serves as a member of the Supervisory Board of EfTEN Kinnisvarafond AS, and as a member of the management boards and supervisory boards of several other companies. Tauno has graduated from the Tallinn University of Technology.
Tauno Tats does not hold any shares of AS LHV Group. Ambient Sound Investments OÜ holds 1,595,620 shares of AS LHV Group.
Remuneration committee
The Remuneration Committee is charged with the task of assessing the principles of remuneration within the LHV consolidation group companies, as well as the impact of remuneration-related decisions on adherence to the requirements established for the management of risks, own funds and liquidity. The Remuneration Committee is set up of at least three members of the Supervisory Board of AS LHV Pank.
The Remuneration Committee:
- conducts supervision over the remuneration of the management board and staff members of companies incorporated in the LHV consolidation group;
- assesses, at least once a year, the implementation of the remuneration principles and makes proposals for the updating of the remuneration principles, where necessary, and
- prepares the draft remuneration decisions for submission to the Supervisory Board.
Madis Toomsalu
Töötasukomitee esimees
Madis Toomsalu serves as the supervisory boards of AS LHV Pank and AS LHV Varahaldus. He is member of the Management Board of MTÜ Finance Estonia. He has previously served as Head of Credits and chairman of the Credit Committee in LHV Bank. Toomsalu has obtained a bachelor’s degree in business management from Tallinn University of Technology in 2009 and a master’s degree in 2011 in public sector finance.
Madis Toomsalu owns 24,397 shares of AS LHV Group. Madis Toomsalu has the right to acquire a total of 46,979 shares of AS LHV Group based on options issued in 2016, 2017 and 2018.
Rain Lõhmus is the founder of LHV. Rain serves as a member of the supervisory boards of AS LHV Pank, AS LHV Finance and AS Arco Vara, and as a member of the management boards and supervisory boards of several other companies. Rain has graduated from the Tallinn University of Technology and completed the MBA programme in Harvard Business School. He is also a member of the Estonian Business Association.
Rain Lõhmus and persons related to them (Lõhmus Holdings OÜ, OÜ Merona Systems) own a total of 6,478,005 shares, which is 24.9% of all shares.
Andres Viisemann is the founder of LHV and the manager of LHV's pension funds. Andres serves as a member of the supervisory boards of AS LHV Pank, AS LHV Varahaldus and AS Fertilitas, and as a member of the management boards and supervisory boards of several other companies. Andres has graduated from the University of Tartu, and has acquired an MBA degree in international business management in INSEAD.
Andres Viisemann does not hold any shares of AS LHV Group. The individuals associated with him (Viisemann Investments AG, Viisemann Holdings OÜ) own a total of 2,549,308 shares, which accounts for 9.8% of all shares. Andres Viisemann has the right to acquire a total of 34,505 shares of AS LHV Group based on options issued in 2016, 2017 and 2018.
Risk and Capital Committee
The Risk and Capital Committee monitors the implementation of the risk management policy and the capital management policy by the companies in the LHV consolidation group. The Risk and Capital Committee reviews regular risk reports, the processes ensuring capital adequacy and capital plans. The Risk and Capital Committee has to include at least three members, including the Chairman of the Supervisory Board.
The jurisdiction of the Risk and Capital Committee includes
- advising the Supervisory and Management Boards on the risk management principles and risk tolerance,
- supervision of the implementation of the risk management principles by the Management Board in accordance with the instructions of the Supervisory Board,
- checking of the accounting of business model and risk management principles in the fees set for clients and, in the event of any deficiencies, submission of an improvement plan to the Supervisory Board,
- checking of the accounting of the likelihood and timing of risk, capital, liquidity and revenues in the principles of remuneration.
Rain Lõhmus
Riski ja kapitalikomitee esimees
Rain Lõhmus is the founder of LHV. Rain serves as a member of the supervisory boards of AS LHV Pank, AS LHV Finance and AS Arco Vara, and as a member of the management boards and supervisory boards of several other companies. Rain has graduated from the Tallinn University of Technology and completed the MBA programme in Harvard Business School. He is also a member of the Estonian Business Association.
Rain Lõhmus and persons related to them (Lõhmus Holdings OÜ, OÜ Merona Systems) own a total of 6,478,005 shares, which is 24.9% of all shares.
Andres Viisemann is the founder of LHV and the manager of LHV's pension funds. Andres serves as a member of the supervisory boards of AS LHV Pank, AS LHV Varahaldus and AS Fertilitas, and as a member of the management boards and supervisory boards of several other companies. Andres has graduated from the University of Tartu, and has acquired an MBA degree in international business management in INSEAD.
Andres Viisemann does not hold any shares of AS LHV Group. The individuals associated with him (Viisemann Investments AG, Viisemann Holdings OÜ) own a total of 2,549,308 shares, which accounts for 9.8% of all shares. Andres Viisemann has the right to acquire a total of 34,505 shares of AS LHV Group based on options issued in 2016, 2017 and 2018.
Tiina Mõis is the owner and managing director of AS Genteel. Tiina is a member of the Supervisory Board of AS LHV Pank, AS Baltika and several other companies. Tiina has graduated from the Tallinn University of Technology.
Tiina Mõis does not hold any shares of AS LHV Group. AS Genteel holds 999,456 shares of AS LHV Group.
Auditor
In November 2017 the Management Board in cooperation with the Audit Committee conducted a selection process to determine the external auditor for the company. LHV requested submissions from four of the largest internationally renown audit firms and met with their representatives. As a result of the process AS PricewaterhouseCoopers was selected and nominated as the auditor at the annual general meeting of shareholders held on 11 April 2018. LHV concluded an agreement with AS PricewaterhouseCoopers for the financial years 2018 and 2019.
Articles of Association
Best Practice of Corporate Governance
- Report on the Best Practice of Corporate Governance of AS LHV Group in 2017
- Report on the Best Practice of Corporate Governance of AS LHV Group in 2016
- Report on the Best Practice of Corporate Governance of AS LHV Group in 2015
- Report on the Best Practice of Corporate Governance of AS LHV Group in 2014
- Report on the Best Practice of Corporate Governance of AS LHV Group in 2013
- Best Practice of Corporate Governance