Remuneration item Objective Allocation and level Criteria Composition of total remuneration 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 % 2.2 Guidelines for remuneration in the form of shares, subscription rights, options etc. for the next fiscal year The Bank’s variable remuneration schemes shall be intended to reward behaviour and influence culture that ensures long-term value creation and sensible risk-taking. The Board of Directors makes an annual assessment of the maximum level of variable remuneration. In addition, one-time allowances may be used, for example, if this is deemed necessary to attract or retain employees. 2.2.1 Komplett Bank’s remuneration framework and the connection with business strategy, long-term interests and sustainability of the Bank Senior management receive variable remuneration based on an assessment of both quantitative and qualitative conditions based on a two-year period. Variable remuneration to senior management cannot exceed 50% of fixed salary and half is granted in the form of share options that are postponed over a three-year period. This provides incentives for good governance and counteracts excessive risk-taking among management. 2.2.2 Variable remuneration to senior management For senior management, employees who have a significant impact on the Bank’s risk exposure, employees with control responsibilities and employees’ representatives,the remuneration is determined on the basis of an overall assessment, with the emphasis in the variable component of the remuneration being based on results achieved, balance sheet management (including asset-liability management and liquidity management), implementation of the Bank’s strategy plan and compliance with the adopted framework for risk tolerance. The assessment takes into consideration overall goal attainment, trends over time and the Bank’s long-term interests. The overall assessment must be based on both quantitative and qualitative factors. Qualitative factors (comprise 50% of awarded bonus): The qualitative part is discretionary and basically consists of an assessment of the achievement of the manager’s personal objectives. Examples of qualitative factors are: Ǵ Compliance with internal and external regulations Ǵ Strategic objectives/KPI within the manager’s area Ǵ Contribution to the Bank’s activities as a whole Quantitative factors (comprise 50% of awarded bonus): For the quantitative part of variable remuneration, clear criteria have been set for what is minimum objective achievement and when the objectives are met. For performance and balance sheet targets, there is a clear correlation between the Bank’s plans and objectives, where performance achievement is assessed based on a 5-step matrix between 0-125%. Specific criteria have been set for the different steps in the matrix. The sustainability goals support the Bank’s plans, with clear goals, so that bonus allocation depends on whether the criterion has been achieved. Ǵ Risk adjusted result Ǵ Balance sheet development Ǵ Development in key initiatives However, the awarded bonus cannot exceed 50% of fixed salary even if the target achievement may be higher for some criteria. The specific circumstances emphasised shall be adapted to the individual’s function and area of responsibility. The assessment 82 Notes to the financial statements
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