Page 62 - CCB_Annual Report_2022

62 Corporate Governance Statement
This is achieved through the application
of the following 6 principles which The Bank will comply with the
are adhered to when designing or Remuneration Principles by:
implementing any aspect of remuneration:
i We offer a competitive total reward
package that is designed to be
motivating and compelling and is
regularly reviewed against market rates
ii Reward is linked to employees’
behaviours and values as well as
achievement: the ‘how’ as well as
the ‘what’.
iii Our remuneration structures are
straightforward; as such they are
transparent, communicated and
understood by all employees and all
our stakeholders
iv There is a clear link between business,
team and individual performance and
reward, and people can explain when
and why adjustments for performance
have been applied
v Our remuneration practices are
consistent with and promote sound
and effective risk management and
are fully compliant with all appropriate
governance, regulatory requirements
and codes of practice
vi Our remuneration policies, packages
and processes are designed to be
affordable, consistent and efficient,
and do not limit the Bank’s ability to
strengthen its capital base.
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None of this would
be possible without
the contribution
and commitment
of our people
• ensuring its pension provision is in line
with its regulatory obligations under
auto-enrolment as well as its business
strategy and values
• requiring its employees to undertake
not to use personal hedging strategies
or remuneration or liability-related
contracts of insurance to undermine the
risk alignment effects embedded in the
remuneration arrangements
• maintaining the view that all flexible
Remuneration Principles remuneration schemes are discretionary • Setting appropriate ratios between
and subject to the approval of the fixed and variable components of total
Performance & Remuneration Committee remuneration so that the fixed element
• having an independent Risk & Compliance represents the highest proportion of the
• the Board annually reviewing the Bank’s total remuneration package
Remuneration Policy to ensure that function which has a direct reporting line
it is consistent with the corporate / into the Risk Committee. The CRO reports • confirming that payments related to the
strategic plan, agreed risk appetites and annually to the Remuneration Committee early termination of a contract reflect
performance achieved over time and
regulatory requirements • ensuring that total variable remuneration are designed in a way that does not
• using the Rolling Objectives My Plan does not limit the Bank’s ability to reward failure
(ROMP) process to ensure that detailed strengthen its capital base by ensuring
performance objectives are drawn up that all variable and non-variable pay • the Bank will use the regulators’
are linked to specific financial targets remuneration principles in assessing
and reviewed for all employees which and are subject to the approval of the its exposure to risks arising from its
are aligned to the Bank’s business Performance & Remuneration Committee remuneration policy as part of the
strategy including its risk management who can declare that all variable and Internal Capital Adequacy Assessment
objectives and appetite non-variable pay will not be paid in the Process (ICAAP)
• formally linking annual salary reviews, event of a potential capital shortfall
• applying the same overall principles to
profit share and bonus payments • regularly reviewing the regulatory capital all directors and employees, regardless
to the overall performance of levels at the Bank’s Risk Committee of whether they meet the definition of
individuals, including achievement of which includes the Non-Executive “Material Risk Takers” and/or “Code Staff”.
performance objectives Directors who sit on the Performance
• ensuring that the Senior Management & Remuneration Committee. The • “Signing Bonus” “buy-out” and/or
“golden handshake” are not routinely
variable pay contain specific Performance & Remuneration Committee used and are always subject to Chief
performance metrics linked to the members are therefore always aware of Executive Officer and Board approval. All
long-term performance of the potential capital issues variable remuneration is subject to Malus
Bank, including compliance and risk • ensuring that the allocation of variable and Clawback for a period of seven years
management objectives remuneration components within the from the date of award.
• ensuring that a Conflict of Interest Policy Bank also considers all types of current
is in place and is always adhered to and future risks, and assessments of
• subjecting the implementation of the financial performance used to calculate
remuneration policy to central and variable remuneration components
independent internal review from the or pools of variable remuneration
Compliance function at least annually components must be based principally
on profits