Komplett Bank Annual Report 2020

Remuneration item Objective Allocation and level Criteria Composition of total remuneration The Company’s management team Fixed salary Attract and retain the right people by offering competitive but not market-leading conditions. We offer basic salary levels that are adapted and differentiated according to the individual’s responsibilities, performance and contribution to the Company’s objectives. The level is competitive in the markets in which we operate. The basic salary is normally subject to annual review based on an evaluation of the individual’s performance and contribution to the Company’s objectives. 62% Variable remuneration (Share options) Ensure that employees and shareholders have the same interests, and reward long-term value creation. Variable remuneration shall not exceed 50% of the fixed remuneration for senior management*. Half of the variable remuneration is awarded as share options that are released evenly over a period of 3 years. The remuneration shall be calculated on the basis of assessments of financial and non-financial performance over two consecutive years, so that the bonus level (in relation to the maximum bonus) for a year shall constitute the average of the bonus level calculated for these two years in isolation. 31% One-time allowances One-time allowances may be decided in individual cases, for example in connection with recruitment (“sign on fee”) or as compensation for individual achievements or efforts. Such one-time allowances can be based on share options, in which case they will comply with the rules for such benefits where appropriate. In each case, the Board of Directors decides on any deviant provisions for share option- based one-time allowances. Share option-based one-time allowances are decided by the Board of Directors. Individual cases in connection with recruitment or as compensation for individual achievements or efforts. If awarded to senior management, they are processed in accordance with the requirements of the Financial Institutions Regulations. 0% Pension and insurance Attract and retain the right people by offering competitive but not market-leading conditions. All employees are covered by a defined contribution pension scheme with 6% of salary from 1-7.1 G and with 12% of salary from 7.1-12 G. No other pension schemes have been agreed for any employees. Non-performance-based 6% Benefits in kind and insurance Attract and retain the right people by offering competitive but not market-leading conditions. Benefits in kind that are not significant in relation to fixed salary are determined for all employees by the CEO. Benefits in kind are granted in accordance with general practice and to promote physical activity among employees. Non-performance-based 1% Board of Directors Directors’ remuneration Attract and retain people who have competence related to the Bank’s risk management and internal control. The board members have an annual, fixed remuneration. Separate rates are set for the Chairman of the Board, external board members, employee- elected board members and employee-elected deputies. The Board of Directors receives the remuneration in the form of cash payment. Non-performance-based 100% Komplett Bank Annual Report 2020 95