According to the policy, in the Bank Millennium the main source of employees' income is the base salary resulting from the employment contract. Variable remuneration is an additional, motivational element of total remuneration. The employee’s basic salary is shaped in relation to the tasks performed in a given organizational unit, the scope of responsibility, qualifications, impact on the company’s risk profile and based on the analysis of payroll information presented in payroll research on the financial market.
The Bank regularly reviews salaries and positions. Based on the assessment of the Group’s financial condition and business environment, the Bank’s Management Board may decide to allocate a pool of funds to change the base salary of employees. Salary levels are verified taking into account periodic assessment of work results, skills and are compared with market remuneration benchmarks information.
Variable remuneration is shaped within various bonus systems, which aim to motivate employees to implement business and organizational plans. Bonus systems and periodic assessment criteria in the Bank Millennium Group are adapted to the specific nature of employees' activities in individual areas of the Group. The amount of bonus budgets allocated for the payment of bonuses is determined depending on the degree of implementation of the total net profit plan of the Bank Millennium Group and in the case of business line employees – the implementation of the objectives of business lines. It is assumed that individual bonuses may not exceed 100% of the total annual base salary. Bonuses are awarded within the bonus pool based on an assessment of the work and the degree of commitment to achieving the goals set for employees.
The Bank Millennium Group pay attention to properly shape the remuneration of employees in managerial positions (Risk Takers). The principles of awarding variable remuneration for Members of the Management Board of Bank Millennium and other Risk Takers are included in the „Policy of remuneration of employees having a significant impact on the risk profile in the Bank Millennium SA Group”. The policy is reviewed annually.
The bonus pool for Risk Takers is determined after prior analysis of the Bank’s situation in terms of:
business results achieved:
liquidity: loans / deposits ratio, value of liquid assets;
capital adequacy ratios in relation to the KNF reference level.
The evaluation of the results includes financial and non-financial criteria and takes place over a period of at least three years.
Rules for the payment of variable remuneration paid in 2020 for 2019: