Decision-making process used in the specification of the compensation programme:
The Bank’s Board of Directors is responsible for compensation matters. The Bank does not have a compensation committee appointed by the Board for the management of the compensation programme. It was not considered necessary due to the narrow scope of the Bank’s business. The Bank’s Board of Directors monitors the compensation programmes and annually assesses their effectiveness.
Bonum Bank’s compliance function verifies at least once a year whether the remuneration scheme, as approved by the Board of Directors, has been complied with. The compensation of control functions’ personnel is independent of the business area being supervised.
Relationship between compensation and result
The compensation programme shall be in line with the Bank’s business strategy, objectives and values and support the Bank’s long-term benefit. The compensation programme shall also be in harmony with the Bank’s proper and effective risk management and risk-bearing capacity and promote them. The compensation programme must also support good corporate governance.
Criteria used in the assessment of performance, risk-based changes to the amount of compensation, postponement practices and compensation payment criteria
The variable remuneration of a beneficiary in the bank cannot exceed EUR 50,000 during an earning period of one year. The Bank may decide not to pay any variable compensation either partially or at all in the event that the financial position of the bank has weakened to the extent that this would be unreasonable considering the situation of the bank.
Severance pay or other compensation payable to an employee can be paid if employment terminates prematurely. The principles of Act on Credit Institutions chapter 8 are taken into account in payment, and the payment criteria are laid down so that compensation is not paid for failed performance.