Page 70 - CCB_Full-Annual-Report-2021

70 Corporate Governance Statement 71

Contents
Contents

The choice of the performance metrics and, as such, voluntarily operates under the
applicable to the annual bonus scheme code of conduct in relation to executive
reflects the Board’s belief that any incentive remuneration consulting in the UK. Strategic Report
compensation should be appropriately Deloitte has provided independent advice
challenging and tied to the delivery of the on matters under consideration by the
defined financial and risk management Performance & Remuneration Committee
objectives, along with specific individual including compliance with regulations,
objectives. An element of deferral applies advice on market trends and data,
to the executive directors’ bonus scheme. remuneration policy and implementation
of remuneration arrangements, including
The LTIP performance conditions support in remuneration arrangements for
were selected by the Performance & departing Executives. The Performance
Remuneration Committee on the basis & Remuneration Committee is satisfied
that they reward the delivery of long-term that the advice it has received has been Corporate Governance Statement
returns to shareholders and the Bank’s objective and independent.
financial growth and are consistent with
the Bank’s objective of delivering specific In addition, management received
long-term value to shareholders. The LTIP external advice, including market data and
scheme was discontinued in 2020, with the legal counsel, from a number of other
last granted LTIP being for the performance providers which is not considered to be
period ending 2021. Where performance material in assisting the Performance &
measures are achieved for 2021, the LTIP Remuneration Committee to consider
award will vest in 2022 at a maximum of Directors’ remuneration.
20% base salary. The Executive bonus
scheme was increased by 20% to a Remuneration policy for other employees
maximum of 50% in 2020, maintaining The Bank’s approach to annual salary
the variable remuneration package reviews is consistent across the business
for Executives. Independent Auditor’s Report
with consideration given to affordability,
the level of experience, responsibility, Element of Purpose and Link Operation Maximum Performance Targets
The Performance & Remuneration individual performance, and salary level in
Committee operates the LTIP in comparable companies. Remuneration to Strategy
accordance with the plan rules, consistent Fees ∞ Reflects time ∞ Cash fee paid ∞ There is no ∞ Non-executive
with market practice, and retains discretion Pension and benefits provided to all commitments and prescribed maximum directors do
over a number of areas relating to the employees are broadly in line with the responsibilities ∞ Reviewed on an annual increase. All not participate
operation and administration of the plan. of each role annual basis increases are guided in variable pay
policy for Executive Directors, although the
commencement of benefits may be subject ∞ Reflects fees ∞ NED fees are by market rates and elements
Benefits offered to executive directors to longer periods of eligibility at the start considered and the general increase
apply from the commencement of employment. paid by financial approved by the for the executive
of employment. institutions of Shareholders director population
similar size, Financial Statements
Remuneration policy for characteristics, and Chairman ∞ NEDs who chair
Highest paid Director – Non-Executive Directors
2021 remuneration disclosure and sector ∞ Chairman fees Board Committees
All Non-Executive Directors are appointed comparators are approved by receive an additional
The total remuneration paid to the Bank’s for an initial term of 36 months and may be Performance & responsibility
highest paid Director for qualifying services terminated by either party upon 3 months’ Remuneration allowance of £6k
as a Director in the period from 1 January written notice. Non-Executive fees are set Committee
to 31 December 2021 is included in Note 11 in line with the policy in the table below. ∞ The Senior
to the financial statements. Independent
Non-Executive Directors are not eligible to Director receives
participate in any of the benefits provided an additional
Consideration by the Directors of matters to employees or Executive Directors except
relating to Directors’ Remuneration responsibility
for private medical insurance. allowance of £6k Notes to the Financial Statements
The Performance & Remuneration
Committee engage Deloitte LLP (Deloitte)
to provide independent advice on
remuneration matters. Deloitte is a member
of the Remuneration Consultants Group