Remuneration Policy

1-OBJECTIVE 

Remuneration Policy was approved by the Bank’s Board of Directors. The policy complies with the context and structure of the Bank’s operations, strategies, long term targets and risk management structure and defines the remuneration principles, rules, provisions and practices that contribute to efficient risk management within the scope of Corporate Governance Principles of Capital Markets Boards (CMBs) and Banking Regulation and Supervision Agency (BRSA). 

2-SCOPE 

Remuneration Policy defines the remuneration principles and rules which are valid for the General Manager, Executive Vice Presidents and all employees of the Bank.

The profile of the Bank’s employees is divided into two parts as follows: The employees who are the members of the Bank and Insurance Employees Union (BASS) and the employees who are not. 

  • Employees who are the members of the Union, who work under the titles defined by the contract and subject to the provisions of the Collective Bargaining Agreement. 
  • Employees who are not subject to the provisions of the Collective Bargaining Agreement. 

3-DEFINITIONS AND ABBREVIATIONS

BRSA: 
Banking Regulation and Supervision Agency 

CMB: Capital Markets Board 

BASS: Bank and Insurance Employees Union 

Bank: VakıfBank 

4- BASIC PRINCIPLES AND GUIDELINES 

The main principle for the payment of all employees and executives in each level is to comply with the Bank’s ethical principles, strategic targets, internal balance and not to associate with only short term performance of the Bank. 

It is possible to make premium payments to Bank’s executives and other employees which are based on the performance of the Bank, however these payments should contribute to the corporate values of the Bank positively and depend on the objective conditions. 

The wages of the Board Members and the Audit Committee Members are determined by the General Assembly. 

Premiums based on the performance, which are not guaranteed as an amount in advance, are determined objectively in order to contribute to the corporate values of the Bank. Performance based premium payment criteria is determined and announced to the employees which is reviewed regularly. 

Board of Directors is authorized and responsible for the effective implementation of remuneration policy and its practices. Senior management of the Bank is responsible to the Board of Directors for carrying out and managing the implementation of the remuneration in an effective way in accordance with the relevant legislations and the remuneration policy of the Bank.

Payments to the executives and the employees within the scope of Internal Audit departments are assessed independently from the performance of the department which they audit or control. It is determined by taking into consideration of the related employee’s own performance. 

5. IMPLEMENTATION OF THE REMUNERATION POLICY 

General implementation principles of the remuneration policy are as follows. 

5.1. Wage Increases 

The wage increases of the employees who are the members of the Union are decided according to Collective Bargaining Agreement made with the Bank and Insurance Employees Union. The wage increases of the employees who are not the members of the Union are decided by the Board of Directors. Wage increases belonging to the relevant period are announced to the employees. 

5.2. Decision of the new remuneration following the promotion or change of position 

In case of a change in the remuneration degree of the employees who are promoted or whose position is changed, the new remuneration is determined depending on his/her position at the new level. 

5.3. Performance Premium 

Performance premium is paid to the employees through the assessment of their current performance in order to be incentive for their future performance. The performance premium is paid semi-annually. 

5.4. Compensation 

The payment basis and the amount of the compensation are implemented for the employees who are the members of the Union (specialist, foreign language, licensure compensation, etc.) are decided by the Collective Bargaining made with the Bank and Insurance Employees Union. On the other hand, all of these for the employees who are not the members of the Union are decided by the Board of Directors. 

5.5. Welfare Benefits 

The payment basis and the amount of the welfare benefits that will be applicable for the employees who are the members of the Union regarding financial assistance of food, settlement, etc. are determined by Collective Bargaining made with the Bank and Insurance Employees Union. The amounts will be paid as welfare benefits to the employees who are not the members of the Union are determined by the Board of Directors as the same amount with the others. 

6. REMUNERATION COMMITTEE 

Remuneration Committee evaluates remuneration policies and practices in the context of risk management and reports its proposals to the Board of Directors annually.

Remuneration Committee determines its proposals regarding the remuneration of senior executives by taking into consideration the Bank’s long term targets. Considering the degree of the criteria achievements which is linked to the performance of the executives, the committee submits its remuneration proposals regarding senior executives to the Board of Directors. 

7- ENFORCEMENT 

The Remuneration Policy is enacted as of 28 February 2014. Additionally, any subsequent amendments and revisions on the policy will be enacted with the approval of the Board of Director.