Compensation policies
[GRI 103-1], [GRI 103-2], [GRI 103-3] The Bank Millennium Group also has a uniform “Compensation Policy for employees of the Bank Millennium S.A. Group”, which articulates the assumptions used to shape the fixed and variable components of compensation for all the Group employees. The policy aims to provide a formal framework for shaping the practice of compensating all the Group’s employees from the perspective of corporate governance, institutional safety and the adequacy of compensation to the Group’s standing, scale of operations and growth potential.
Furthermore, for employees identified as having a material impact on the risk profile (the so called Risk Takers), there is “Compensation Policy for employees having a material impact on the risk profile at the Bank Millennium S.A. Group”, which specifies detailed rules for granting variable components of compensation and other terms and conditions affecting the decisions on their payment. At Bank Millennium, the “Instruction for identification of Risk Takers at the Bank Millennium Group” also applies and it includes guidelines for the annual process of identifying Risk Takers.
In subsidiaries: Millennium Dom Maklerski SA and Millennium Towarzystwo Funduszy Inwestycyjnych SA, in accordance with the statutory obligation, separate compensation policies are in place and the solutions comprised therein are contained in the framework adopted in the “Compensation Policy of the Bank Millennium S.A. Group”.
The adopted policies form a framework for organizing principles of compensation in key aspects:
- principles for defining the amounts of compensation,
- the relationship of variable compensation to fixed compensation,
- decision-making process for changing compensation,
- supervision of all the compensation decisions at the Bank and in the Group,
- linking bonuses to good results of both the company and the employee,
- counteracting incentives that induce actions and decisions that threaten the long-term interest of the Bank and its clients,
- defining assessment criteria corresponding to short-, medium- and long-term goals set for employees,
- taking into account additional qualitative criteria for assessing work in units where work is especially directed to sales results.
The Bank consistently uses stable forms of employment and compensation. Employees have employment contracts and fixed compensation makes up a major part of their overall compensation. The policy defines the framework to determine fixed compensation of employees, taking into consideration the tasks and competences required in specific teams and units. The assumed compensation levels on individual positions are verified based on the market situation and data from reports on compensation levels in business sectors.
The Bank constantly monitors the solutions adopted in individual business lines so that they do not create stimuli for actions and decisions that threaten the long-term goals of the Bank, exceed the accepted risk profile, and do not encourage actions that are inconsistent with the best interests of the Group’s clients and investors.
At the Bank, regular salary and position reviews are conducted. Pursuant to an assessment of the Group’s financial condition and its business environment, the Bank’s Management Board may make a decision to award a pool of funds to be used to modify employees’ base salaries. Salary levels are reviewed taking into account the periodic assessment of performance and skills and are compared with salary information presented in salary studies on the financial markets.
[GRI 202-1] Ratio of entry level wage by gender compared to minimum wage in 2021
| Bank Millennium Group | Men | Women | Total |
| 120% | 120% | 120% |
Policy of variable compensation components
As part of implementation of the Compensation Policy in the Bank Millennium Group, there are in place, verified on an annual basis, „Regulations for granting variable compensation components„, which comprehensively describe bonus rules for all Bank units. These regulations are a reference point for all bonus solutions in the Bank’s individual units. The provisions of the document supplement the “Rules and Regulations for Compensating Employees of the Bank Millennium S.A.’s Head Office”.
Variable compensation is an additional motivational part of the overall compensation, shaped using differentiated bonus schemes 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 client 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 each time 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 Bank’s long-term interests and avoid excessive risk exposure.
The bonus for key employees with material impact on the risk profile in Bank Millennium Group in accordance with policy requirements is paid in 50% in cash and the remaining 50% is paid in the form of a financial instrument. A minimum of 40% of the awarded variable compensation is deferred for payment in subsequent years. If the variable annual remuneration falls below a specific threshold, the bonus may be paid fully in cash.