Remuneration policy
Bank Millennium Group conducts stable remuneration policy, tailored to the individual business lines and employee groups. In the last financial year no significant changes have been introduced to the policy.
Remunerations are determined with reference to the scope of tasks performed in the particular organisational units, level of responsibility of the employee and on the basis of analysis presented in financial market remuneration surveys. Remuneration is verified periodically based on evaluation of work results and market comparisons.
Variable remuneration components are a motivational part of the total remuneration. They are paid on a monthly, quarterly, semi-annual or annual basis – depending on the time horizon of assessed work results.
Employees of Millennium Group have been subject to bonus systems tailored to the specific nature of the business targets set for particular units. The bonus pool depended on the level of the consolidated net profit plan of Bank Millennium Group.
Individual bonuses were awarded within the bonus pool on the basis of evaluation of work quality as well as the degree of commitment to fulfilment of targets set for the employees.
An important part of managing remuneration in the Bank is the remuneration policy defined for persons occupying management positions. It is a tool of supporting the management system of Bank Millennium Group and encourages particular care for the Bank’s long-term good as well as avoidance of excessive exposure to risk. It is described in “Report capital adequacy, risk and remuneration policy in 2016”.
The individual remuneration of persons covered by this policy, including Board Members, cannot exceed the adopted % of the reference level (100% currently) with respect to the total annual base. Moreover the pool assigned for variable components of remuneration of Members of the Management Board of Bank Millennium cannot exceed the share defined by the Supervisory Board in consolidated net profit of Bank Millennium Group (currently 2%).
The annual bonus pool for persons occupying management positions is awarded after prior analysis of the Bank situation as regards:
- Actual business results: Net Profit, Result on Banking Activity, Cost/Income ratio, ROE;
- Liquidity: Loans/Deposits ratio, value of liquid assets;
- Capital adequacy ratios versus the KNF reference level.
Remuneration of Management Board
Determination of the terms and conditions of contracts and remuneration of the Management Board Members falls under the powers of the Supervisory Board. The Personnel Committee of the Supervisory Board considers cases pertaining to the principles of compensation and levels of remuneration for the Management Board Members.
The total remuneration of the Members of the Management Board consists of a fixed and a variable part. The variable part may be an annual bonus.
Decisions concerning the granting of bonuses to Management Board Members are taken by the Personnel Committee of the Supervisory Board following a performance appraisal with the inclusion of the financial criteria:
- execution of the planned budgets and ratios for the activity area under management,
- comparison with competitors in the same segment of the market,
- market business criteria defined for the period;
as well as non-financial criteria, in particular:
- overall management quality in the area of responsibility,
- effective leadership and contribution to the Bank’s development,
- management and supervision over the units in the area of responsibility.
The total remuneration for 2016 of all Members of the Management Board performing functions in this year was PLN 15,821.5, thousand. The said amount includes remuneration and part of annual bonus for 2012, 2013, 2014 and 2015 (in the form of cash and phantom shares) in the amount of PLN 5,134.6 thousand as well as additional benefits and annual leave equivalent.
Remuneration, bonuses and benefits paid to Board Members in 2016
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|
Name |
Remuneration in 2016***
including annual reward for 2012, 2013, 2014 and 2015 |
Benefits | Total |
|---|---|---|---|
| Joao Bras Jorge | 3 554.40 | 1 111.30 | 4 665.70 |
| Fernando Bicho | 2 703.2 | 95.5 | 2 798.7 |
| Wojciech Haase | 2 206.8 | 22.9 | 2 229.7 |
| Andrzej Gliński | 1 985.9 | 25.1 | 2 011.0 |
| Maria Campos | 2 206.8 | 345.9 | 2 552.7 |
| Wojciech Rybak (*) | 755.0 | 1.9 | 756.9 |
| Michał Gajewski (**) | 806.6 | 0.1 | 806.8 |
| Total | 14 218.7 | 1 602.8 | 15 821.5 |
(*) from 06.06.2016 – Member of the Management Board
(**) to 13.05.2016 – Member of the Management Board – after the departure from the Management Board also paid compensation for the non-competition clause in the amount of PLN 660.0 thousand and in November 2016 annual award for 2015 in the form of phantom shares in amount of PLN 118.0 thousand.
(***) without variable remuneration for 2016
Apart from the above remuneration in 2016 was paid to Mr Artur Klimczak – former Deputy Chairman of the Management Board, annual award for 2012, 2013, 2014 in the form of cash and phantom shares in amount of PLN 376.6 thousand.
In the period from 01.01.2016 to 31.12.2016 a provision was established for annual bonus in the amount of PLN 5,763.0 thousand.
The decision to award variable remuneration to Management Board Members for 2016 shall be taken by the Supervisory Board Personnel Committee after approval of the Bank’s results by the General Meeting of Shareholders.
The Supervisory Board Personnel Committee, when making a review of the Remuneration Policy, found that it supported development and safety of the Bank Millennium S.A. Capital Group and that the to-date practice of managing variable remuneration corresponded to targets set in the Policy. Flexibly managed bonus systems were supportive to business priorities adopted and reflected financial results achieved by Bank Millennium Group business lines.