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Remuneration Policy

An important part of remuneration management in the Bank is the stand-alone policy of variable components of remuneration of persons in management positions in the meaning of Regulation of European Parliament and of the Council of  26 June 2013 , which is a tool to support the Bank Millennium Group’s management system and encourages particular attention to the Bank’s long-term interest as well as avoiding excessive exposure to risk.

The aim of the policy is implemented by deferring a significant part of variable remuneration of persons in specific management positions for the period of three years and reassessing the effects of management decisions over this period. Moreover 50% of this remuneration is paid in financial instruments, the value of which depends on the future price of Bank Millennium shares.

Individual variable remuneration of persons embraced by the policy shall not exceed a defined % of the reference level (100%) with respect to total annual base salary what is according to CRD IV. Additionally, the total pool of money for variable components of the remuneration of Members of Management Board of Bank Millennium may not exceed a percentage (defined by the Supervisory Board) of consolidated net profit of Bank Millennium Group (2%).

The annual bonus pool for persons in management positions is awarded following prior analysis of the Bank’s situation regarding:

  • Actual business results and main efficiency and profitability ratios;
  • Liquidity;
  • Capital adequacy ratios.

The Policy of variable components of remuneration of persons in management positions has been revised by Supervisory Board of 24th October 2014.

Bank Millennium shall disclose on its internet site adjusted quantitative information concerning variable components of remuneration of persons in management positions after the meeting of Personnel Committee of Supervisory Board focused on evaluation of 2014 and granting of variable components of remuneration.

Remaining employees in 2014 were covered by bonus systems tailored to the business targets defined for individual units. The amount of bonus pool for quarterly calculation periods in individual units depends on attainment of positive financial results by the Bank as well as fulfilment of the total net profit plan of Bank Millennium Group.

Bonuses in the Bank’s back-office units totalled on average approx. 1/5 of total annual remuneration. In bonus systems based on sales performance the amount of bonus is relatively more diversified, however it is assumed that the value of annual variable remuneration of the sales force may not exceed annual base salary. Base salaries of employees are subject to revision twice a year with reference in particular  to work performance evaluation as well as market remuneration benchmarks.

Decision on granting  variable remuneration referring to 2014 for Management Board  is going to be taken by Personnel Committee of Supervisory Board after approval of Bank’s results by Shareholding Meeting.