Financial and
ESG report 2020

Remuneration Policy

The Bank Millennium Group functions the "Employee remuneration policy in the Bank Millennium SA Group", which formulates the assumptions used to shape fixed and variable remuneration components for all employees of the Group.

M2020-170 M2020-170

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: 

Awarding and payment of 50% of the value of variable remuneration components takes place after the end of the settlement period and after the announcement of the financial results. The payment of 50% of the variable remuneration is deferred for 3 years, payable in equal annual instalments. Members of the Management Board will receive each part of the bonus granted – paid in the year following the accounting period and deferred – half in cash and half in own shares. 

Granting and payment of 60% of the variable remuneration components for 2019 takes place after the end of the settlement period. The payment of the remaining 40% of the variable remuneration is deferred for 3 years, payable in equal annual instalments. A minimum of 50% of the variable remuneration is paid in treasury shares. 

Management Board remuneration

Determining the terms of contracts and remuneration for Members of the Management Board is the responsibility of the Supervisory Board, taking into account the recommendations of the Personnel Committee of the Supervisory Board responsible for supervising the remuneration policy. 

The total remuneration of the members of the Management Board consists of a fixed and a variable part. The variable part of the remuneration may be an annual bonus, which depends on the Bank’s performance, the result compared to banks of a similar size and the individual assessment of the Management Board Member. 

Decisions on granting bonuses to Management Board members are made after analysing the results, taking into account the financial criteria: 

  • implementation of planned budgets and indicators set for the managed area of ​​activity, 
  • comparisons with other banks of a similar size, 
  • business market criteria established for the period; 

and non-financial criteria, in particular: 

  • overall quality of management in the area of responsibility, 
  • effective leadership and contribution to the Bank’s development, 
  • management and supervision over units in the area of responsibility. 

Members of the Supervisory Board receive only fixed remuneration for their work in the Supervisory Boards and Committees which is adequate to their function and the scale of operations of the Bank Millennium Group. 

The total value of base remuneration of Members of the Management Board for performing this function in 2020 was PLN 10 498.31 thousand. Additionally, Members of the Board were paid part of an annual bonus for 2016, 2017, 2018 and 2019 years (in the form of cash and phantom shares) as well as additional benefits. 

Fixed remuneration for the membership of Management Board paid to the Members in 2020 (in PLN thousand):

Name

Period Fixed remuneration
(PLN’000)
Joao Bras Jorge  01.01.2020 – 31.12.2020  2 280.00 
Fernando Bicho  01.01.2020 – 31.12.2020  1 620.00 
Wojciech Haase  01.01.2020 – 31.12.2020  1 320.00 
Andrzej Gliński  01.01.2020 – 31.12.2020  1 318.31 
Wojciech Rybak  01.01.2020 – 31.12.2020  1 320.00 
Antonio Pinto Junior  01.01.2020 – 31.12.2020  1 320.00 
Jarosław Hermann  01.01.2020 – 31.12.2020  1 320.00 

Additional benefits of Management Board Members in 2020 (in PLN thousand)

Name

Period Benefits
(PLN’000)
Joao Bras Jorge   01.01.2020 – 31.12.2020  1 076.19 
Fernando Bicho    01.01.2020 – 31.12.2020  57.05 
Wojciech Haase    01.01.2020 – 31.12.2020  13.31 
Andrzej Gliński   01.01.2020 – 31.12.2020  25.07 
Wojciech Rybak   01.01.2020 – 31.12.2020  3.83 
Antonio Pinto Junior  01.01.2020 – 31.12.2020  747.35 
Jarosław Hermann  01.01.2020 – 31.12.2020  4.56 

 

The additional benefits are mainly connected with accommodation of foreign members of the Management Board and healthcare benefits.  

Variable remuneration vested in 2020 to Management Board Members and to persons who performed this function in prior years (in PLN thousand):

Name Awards for 2016, 2017, 2018 i 2019 (PLN’000)
cash phantom shares own shares *
Joao Bras Jorge  787.31              385.04 306.00 
Fernando Bicho  616.07              298.46 243.00 
Wojciech Haase  506.96              247.17 198.00 
Andrzej Gliński  498.56               240.45 198.00 
Wojciech Rybak  464.96              213.57 198.00 
Antonio Pinto Junior  263.74                52.59 198.00 
Jarosław Hermann  239.09                 32,87 198.00 
       
Maria Campos  243.23                194.57 0.00 
* Part of the non-deferred bonus in Bank Millennium shares is subject to Retention for a period of 12 months, counted from the date of vesting, i.e. from 03.07.2020

 

In the period from 01.01.2020 do 31.12.2020 r. a provision was established for annual bonus in the amount of PLN 5 605 thousand.  

The decision to award variable remuneration to Management Board Members for 2020 shall be taken by the Supervisory Board Personnel Committee after approval of the Bank’s results by the General Meeting of Shareholders.  

Policy Evaluation

The Bank Millennium Group maintains a stable remuneration policy. The body supervising the activity of Bank Millennium, having reviewed the remuneration policy, has found that it is conducive to the development and security of the Bank Millennium SA Capital Group and the existing practice of managing variable components corresponds to the goals established in the Policy. 

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