Page 55 - CCB_Annual Report_2022

54 Corporate Governance Statement 55

During 2022, the Committee reviewed Performance
regular reports from management & Remuneration
assessing the adequacy of the allowance
for credit impairment losses. These Committee report
reports assessed the adequacy of historic
provisions against subsequent recoveries, Membership and operation of
the planned recovery strategies for the Committee
individual bad debt cases, reviewed
management’s governance arrangements The Performance & Remuneration
over the adequacy of provisions as well as Committee is chaired by Caroline Fawcett
the governance over impairment models and its members in 2022 included Patrick
and benchmarked the Bank’s metrics Newberry (Chair of Board), Tim Harvey-
against other banks. Samuel (Shareholder Representative),
Christiane Wuillamie (Shareholder
The Committee also reviewed and
Representative) and Nick Treble (Chair
challenged the Bank’s effective interest Remuneration package were able to review and confirm the Bank’s
of Risk Committee). The Chair of the
rate assumptions and model outputs risk-focused remuneration approach,
Audit Committee attends meetings of the The annual pay review for all staff in
considering the Bank’s approach to which holds individuals to account for
Performance & Remuneration Committee 2022 made increases totalling 3% of total
early repayment charges as well as their conduct and competence. ESG
from time to time to ensure alignment salaries. In February 2022 the Committee
reviewing historic performance against and Diversity metrics had been included
between the work of the Performance & agreed to change the benefits package
future forecasts. in variable schemes for 2022 and the
Remuneration Committee and the Audit to make it fairer across all levels in the Committee agreed to add additional
The Audit Committee appraises the Committee. Performance & Remuneration Bank, resulting in the same benefits being requirements to the performance
performance of the internal audit function Committee meetings are also attended available to all colleagues from the start balanced scorecard, including linking
and their continued independence. The by the Chief Executive Officer, the Chief of their employment regardless of their remuneration to embedding the Consumer
Committee has assessed internal audit People Officer and the Company Secretary. grade or job type. At the same time, the Duty principles.
resources and is satisfied that these are The Chief Risk Officer attends annually Bank was able to offer additional salary
appropriate to fulfil their responsibilities. to present his views on the Executives’ sacrifice schemes for pension contributions Socio‑economic Impact
The Committee reviews the Bank’s management of risk and performance and electric car hire as well as increasing
external audit strategy including the against the Senior Management Regime annual holiday entitlement to 30 days The Committee has been mindful
appointment of the external auditors and requirements and company framework. for everyone. throughout 2022 of the socio-economic
approval of the audit fees. No members or attendees participate in the climate and its impact on staff’s wellbeing,
discussion of issues directly affecting their Variable Pay working arrangements and performance.
The Audit Committee also considered the own remuneration. The Committee invites Supporting the Bank’s hybrid working
output of work undertaken to embed a specialist external advisors to attend at least During the year, the Committee reviewed model with colleagues dividing their
Regulatory Reporting Framework within annually to support their work and educate and approved payment of the Bank’s profit time between office and home working,
the Bank that established a more mature on best practice. share scheme, sales and executive bonus the Committee has pledged to ensure
framework for governance and oversight schemes based upon agreed metrics and that there is no bias in remuneration
of regulatory reporting undertaken by The Committee is responsible for performance criteria, as well as upon decisions based on individual’s working
the Bank. reviewing and approving the remuneration advice from the Bank’s Risk function. arrangements and to ensure that lower
and performance arrangements at the In total, it approved payment equalling
The Bank’s external auditors, Bank, including reviewing the Bank’s £2,214k under these schemes; £711k being paid colleagues are supported during
PricewaterhouseCoopers LLP (PwC), remuneration policy to ensure that it paid under the profit share scheme which periods of high inflation. In July 2022, the
were appointed in 2022 following a remains up to date and consistent with most colleagues are part of, £270k under Committee awarded a one-off cost of
tender process. The Audit Committee the relevant requirements of the Financial the Sales bonus scheme and £1,233k under living payment of £1,000 for all colleagues
has received a report from PwC Conduct Authority (FCA) remuneration the executive bonus scheme. It approved below Executive Committee members.
confirming their independence, which code (SYSC 19D) and the Prudential continuation of these schemes, agreeing In September 2022, the Committee
the Audit Committee has considered and Regulation Authority (PRA) rulebook, participants and additional requirements for supported a pyramid approach to 2023
concluded that PwC remain independent as well as supporting the business 2023 to the performance criteria required annual pay review process, which means
and effective as the external auditor. strategy and values of the Bank. In doing for each scheme. that the Bank’s lowest paid colleagues will
PwC verified the Bank’s 2022 interim this, it oversees the performance and receive the highest percentage increases
earnings and provided an opinion on remuneration of the Chair and members Regulatory Requirements in April 2023. The levels within the pyramid
our country-by-country reporting. of the Executive. Remuneration of NEDs range from 5–11% and this means that
These processes were audit related is the responsibility of the Shareholders in The Committee’s review of the FCA letter 40% of colleagues will get an increase
non-audit services. These services were consultation with the Chair of Board. to the Chair of Remuneration Committee equal to 11%.
approved by the Audit Committee albeit confirmed alignment between the FCA’s The Bank’s remuneration policy is included
the threat to audit independence is The Performance & Remuneration and the Bank’s areas of focus around on pages 61 – 69.
clearly insignificant. Committee met three times during 2022. remuneration, and as such, the Committee