Page 63 - CCB_Annual Report_2022

62 Corporate Governance Statement 63

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
This is achieved through the application Remuneration Principles remuneration schemes are discretionary • Setting appropriate ratios between
of the following 6 principles which The Bank will comply with the and subject to the approval of the fixed and variable components of total
are adhered to when designing or Remuneration Principles by: Performance & Remuneration Committee remuneration so that the fixed element
implementing any aspect of remuneration: • having an independent Risk & Compliance represents the highest proportion of the
• the Board annually reviewing the Bank’s total remuneration package
i We offer a competitive total reward Remuneration Policy to ensure that function which has a direct reporting line
package that is designed to be it is consistent with the corporate / into the Risk Committee. The CRO reports • confirming that payments related to the
motivating and compelling and is strategic plan, agreed risk appetites and annually to the Remuneration Committee early termination of a contract reflect
regularly reviewed against market rates performance achieved over time and
regulatory requirements • ensuring that total variable remuneration are designed in a way that does not
ii Reward is linked to employees’ • using the Rolling Objectives My Plan does not limit the Bank’s ability to reward failure
behaviours and values as well as (ROMP) process to ensure that detailed strengthen its capital base by ensuring
achievement: the ‘how’ as well as performance objectives are drawn up that all variable and non-variable pay • the Bank will use the regulators’
the ‘what’. 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
iii Our remuneration structures are are aligned to the Bank’s business Performance & Remuneration Committee remuneration policy as part of the
straightforward; as such they are strategy including its risk management who can declare that all variable and Internal Capital Adequacy Assessment
transparent, communicated and objectives and appetite non-variable pay will not be paid in the Process (ICAAP)
understood by all employees and all • formally linking annual salary reviews, event of a potential capital shortfall
our stakeholders • applying the same overall principles to
profit share and bonus payments • regularly reviewing the regulatory capital all directors and employees, regardless
iv There is a clear link between business, to the overall performance of levels at the Bank’s Risk Committee of whether they meet the definition of
team and individual performance and individuals, including achievement of which includes the Non-Executive “Material Risk Takers” and/or “Code Staff”.
reward, and people can explain when performance objectives Directors who sit on the Performance
and why adjustments for performance • ensuring that the Senior Management & Remuneration Committee. The • “Signing Bonus” “buy-out” and/or
have been applied “golden handshake” are not routinely
variable pay contain specific Performance & Remuneration Committee used and are always subject to Chief
v Our remuneration practices are performance metrics linked to the members are therefore always aware of Executive Officer and Board approval. All
consistent with and promote sound long-term performance of the potential capital issues variable remuneration is subject to Malus
and effective risk management and Bank, including compliance and risk • ensuring that the allocation of variable and Clawback for a period of seven years
are fully compliant with all appropriate management objectives remuneration components within the from the date of award.
governance, regulatory requirements • ensuring that a Conflict of Interest Policy Bank also considers all types of current
and codes of practice
is in place and is always adhered to and future risks, and assessments of
vi Our remuneration policies, packages • subjecting the implementation of the financial performance used to calculate
and processes are designed to be remuneration policy to central and variable remuneration components
affordable, consistent and efficient, independent internal review from the or pools of variable remuneration
and do not limit the Bank’s ability to Compliance function at least annually components must be based principally
strengthen its capital base. on profits