Page 60 - BKT Annual Report 2023 EN

60 BANKA KOMBËTARE TREGTARE

THE REMUNERATION

POLICY

The BKT remuneration policy is designed by Human The Bank’s reward package consists of three key
Resources and approved by Board of Directors. components:
1. Fixed Pay
The Remuneration Policy is designed to reward 2. Variable Pay
competitively the achievement of long-term 3. Other Benefits
sustainable performance. The remuneration policy
aims at promoting effective risk management and Fixed Pay:
discouraging risk-taking beyond the risk appetite/ The base salary represents the fixed element of the
tolerance determined by the banks. reward and reflects the individual’s position, capability
to grow, skills and performance. Significant changes
The salary and other employee benefits are defined in position responsibility or market conditions may be
with the aim of establishing satisfactory and linked with respective adjustments.
competitive levels. Our Compensation Framework
promotes, and rewards sustainable performance Variable Pay:
and contributions based on delivery, behaviour, and The variable pay represents the variable elements of
conduct, across all levels of the company. reward, which are optional and may refer to annual
bonus schemes and other incentive programs and may

Key principles of the remuneration framework vary from year to year. These types of compensation,
include. when awarded, take into consideration individual
• Performance-Based Reward: performance along with the Department/Branch and
• Competitiveness the Bank’s performance. The variable compensation
• Differentiated remuneration. considers appropriate Key Performance Indicators
• Employee Engagement. (KPIs) along with competences and in exceptional
cases other conditions.
The BKT on annual basis identifies the functions / The balance between the fixed and the variable
employees with material impact on Bank’s risk profile. component is a priority which ensures the
These employees are defined as “Identified Staff”. maintenance of market competitiveness and the
The bank has identified the “Identified Staff” based minimization of the risk undertaken. The principle
on the Regulation No. 63, dated 14.11.2012 of the of not undertaking excessive risk is ensured by the
Bank Albania “On the core management principles of existing Committees/Approval authorities which
banks and branches of foreign banks and the criteria operate according to specific procedures and are
on the approval of their administrators”. established bodies.