FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES

The Remuneration policy of the Bank has been prepared in accordance with Banking Regulation and Supervision Agency (BRSA) “Corporate Governance Principles” and “Guideline on Banks’ Good Remuneration Practices” within the scope of proportionality principle, and in compliance with the content, structure and strategies of the Bank’s activities, its long-term targets, risk management structures and in compliance with the local regulation. Remuneration policy aims to prevent extreme risk taking and evaluates the contributions to the effective risk management.

Our Remuneration Policy is intended to encourage TEB to manage risks within the principles and parameters defined and approved by its Board of Directors.

The purpose of our Remuneration Policy is also to ensure that TEB can attract and retain competent and expert employees both in business lines and control functions that will help to fulfill its strategic objectives.

SECOM (Selection and Compensation Committee) is responsible for the preparation of Remuneration Policy on behalf of the Board of Directors and for ensuring its compliance with local regulations and BNP Paribas Group compensation policies provided that they are not contradictory to the local rules and regulations and TEB Policies as approved by TEB Board of Directors. Analysis and establishment of the rules of the RP will be conducted by SECOM with the involvement of Human Resources (HR), Finance, Risk and Compliance Management. After SECOM’s full review and acceptance, Remuneration Policy will be submitted to the Board of Directors for approval. Remuneration Policy is reviewed annually.

The main duties and responsibilities are as follows:

• Formation of a written Remuneration Policy which is in compliance with the BRSA Regulation
• Determination, monitoring and supervision of remuneration implementations (including salaries, performance bonuses, premiums, awards and fringe benefits).
• Approval of the policy for Material Risk Takers that are defined by TEB General Management.
• Annual submission to the BOD the proposals with respect to the assessment of Remuneration Policy and implementations under the risk management.
•  Determination of the criteria for the payments of performance bonuses to the employees based on the Bank’s performance, business line’s, and/or function’s performance and their individual performances and announcement of such criteria to the employees and regular review of such criteria according to the determined standards and special duty and responsibilities.
• SECOM considers the risk policy and other policy documents of the Bank in order to ensure the alignment of the Remuneration Policy with the current organization chart, reporting lines and separation of duties.
• Review of remuneration criteria at least once a year to ensure that the Remuneration Policy does not encourage excessive risk taking nor create conflict of interest between management control systems
• Preparation of SECOM organization chart, reporting levels, segregation of duties and remuneration policy in accordance with the risk policy and other polices of the Bank.

At the Ordinary General Assembly Meeting convened on 27 March 2019, a decision was taken not to pay an attendance fee to Board members in consideration of their roles.  

During the period January-December 2019, any and all rights, interests and remunerations paid to our Board members and senior executives amounted to TL 44,124,897, and travel, accommodation and representation expenses amounted to TL 2,060,841.

Board members may be granted loans within the legally defined limits or may be remunerated depending on various criteria including the Bank’s performance, the positions they hold and the time they allocate.