Page 68 - CCB_Annual Report_2022

68 Corporate Governance Statement 69

Executive Director Remuneration
The table below summarise the Executive Directors’ remuneration policy for 2022:
The choice of the performance metrics departing Executives. The Performance &
applicable to the annual bonus scheme Remuneration Committee is satisfied that
Element of Purpose and Link Operation Maximum Performance reflects the Board’s belief that any incentive the advice it has received has been objective
Remuneration to Strategy Targets
compensation should be appropriately and independent.
Salary The Performance & Reviewed There is no prescribed An element of challenging and tied to the delivery of the In addition, management received
Remuneration Committee annually maximum annual increase. performance- defined financial and risk management external advice, including market data and
is committed to adhering Takes periodic The Performance & related pay objectives, along with specific individual legal counsel, from a number of other
to the Financial Services account of Remuneration Committee applies objectives. An element of deferral applies to providers which is not considered to be
Remuneration Code, practices is guided by the general the executive directors’ bonus scheme. material in assisting the Performance &
thus ensuring that the of financial increase for the broader Benefits offered to executive directors apply Remuneration Committee to consider
Bank has risk-focused institutions of employee population and from the commencement of employment. Directors’ remuneration.
remuneration policies
similar size, on occasions may need to
Reflects skills and characteristics, recognise, for example, an Highest paid Director – Remuneration policy for other employees
experience over time and sector increase in the scale, scope, 2022 remuneration disclosure The Bank’s approach to annual salary
comparators or responsibility of a role. reviews is consistent across the business
Reflects the value of the The total remuneration paid to the Bank’s
individual and their role highest paid Director for qualifying services with consideration given to affordability,
as a Director in the period from 1 January to the level of experience, responsibility,
Provides an appropriate 31 December 2022 is included in Note 11 to individual performance, and salary level in
level of basic fixed income the financial statements. comparable companies.
Avoids excessive risk Pension and benefits provided to all
taking from over reliance Consideration by the Directors of matters employees are broadly in line with the
on variable income relating to Directors’ Remuneration policy for Executive Directors, although the
Benefits To aid retention and Company car Not applicable Not applicable The Performance & Remuneration commencement of benefits may be subject
recruitment allowance, Committee engage Deloitte LLP (Deloitte) to longer periods of eligibility at the start
provision of to provide independent advice on of employment.
private medical remuneration matters. Deloitte is a member
insurance, life of the Remuneration Consultants Group Remuneration policy for
assurance and and, as such, voluntarily operates under the Non‑Executive Directors
permanent code of conduct in relation to executive All Non-Executive Directors are appointed
health insurance remuneration consulting in the UK. for an initial term of 36 months and may be
Deloitte has provided independent advice
Bonus Incentivises annual delivery Paid in cash 50% of salary A combination on matters under consideration by the terminated by either party upon 3 months’
of financial and strategic Not pensionable of 50% Performance & Remuneration Committee written notice. Non-Executive fees are set
goals company and including compliance with regulations, in line with the policy in the table below.
50% individual advice on market trends and data, Non-Executive Directors are not eligible to
performance remuneration policy and implementation participate in any of the benefits provided to
measures of remuneration arrangements, including employees or Executive Directors except for
private medical insurance.
with a deferred support in remuneration arrangements for
element of
amounts over
20% of salary Element of Purpose and Link Operation Maximum Performance
paid over 3 years Remuneration to Strategy Targets
Pension Provides retirement benefits Defined Bank contribute 10% of Not applicable Fees Reflects time commitments Cash fee paid There is no prescribed Non-executive
contribution salary provided executives and responsibilities maximum annual directors do
Opportunity for executives contribute a min 3% of salary. of each role Reviewed on an increase. All increases not participate
to contribute to their own annual basis are guided by market in variable pay
retirement plan Executives may request Reflects fees paid by NED fees are rates and the general elements
a salary sacrifice for the financial institutions of considered and increase for the executive
equivalent of their personal similar size, characteristics, approved by the director population
pension contribution. and sector comparators Shareholders
This arrangement is also and Chair NEDs who chair Board
available for other staff. Committees receive an
Chair fees are additional responsibility
For EDs who have exceeded approved by allowance of £6k
their lifetime allowance and/ Performance &
or tapered allowance, there Remuneration The Senior Independent
is the option of taking a 10% Committee Director receives an
pension allowance in cash additional responsibility
(taxable allowance). allowance of £6k