In pursuit of the Compensation Policy, the Bank Millennium Group has in place the “Regulations for awarding variable compensation elements” setting out the rules for awarding bonuses on a comprehensive basis for all of the Bank’s units, which is subject to an annual review. The document is a reference point for all solutions concerned with awarding bonuses in individual units of the Bank. Its provisions supplement the Rules and regulations for compensation of Bank Millennium SA’s Head Office employees.
Variable compensation is an additional motivational part of the overall compensation. Variable compensation is shaped using differentiated bonus systems whose purpose is to motivate employees to achieve their business and organizational plans. The bonus systems and periodic evaluation criteria in the Bank Millennium Group have been adapted to the specific nature of work performed by employees in the Group’s various areas.
The Bank does its best for the motivation mechanisms addressed to the employees of sales units and other units involved in processes related to customer service to be devised in such a way that they do not lead to a conflict of interest or incentives that may incline Group employees to place their own interests or the firm’s interest first thereby creating a prospective loss for any Group Client.
The bonus pool amount depends on overall results and on the general condition of the Bank. Bonuses are paid out monthly in the Bank’s sales network and other head office units involved in the customer service of retail Clients or quarterly for employees of the Bank’s Head Office.
An important part of this approach is a separate assessment for those in management positions, which encourages managers to pay special attention to the long-term welfare of the Bank and avoid excessive risk exposure.
Bonus for key risk takers in the Bank Millennium Group – according to the policy, 50% is paid in cash and the remaining 50% is paid out in the form of a financial instrument. At least 40% of the awarded variable consideration is deferred to be paid in successive years.