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ANNUAL REPORT 2014

Corporate Governance

2.0. Remuneration Policy and Practices

Based on the recommendation of its Remuneration Committee, the Board has approved a “Group Compensation and Benefits Policy” founded on the following principles:
  • The objective of the Policy is to establish coherent and transparent Compensation and Benefits practices in the Bank and the Group that are consistent with the Bank’s culture, business, long-term objectives, risk strategy, performance, and control environment, as well as with legal and regulatory requirements;
  • The aggregate consolidated amount of compensation and benefits paid by the Bank is included in the annual budget approved by the Board and is set in a way not to affect the Group’s medium and long term capacity to sustain such levels of compensation nor its financial position or its interests;
  • Core Compensation and Benefits include basic salary and performance-based bonus (in addition to a number of ancillary benefits including individual and family medical coverage, education allowances, and others). Individual compensation and benefits are based principally on the achievement of objectives that are effectively aligned with prudent risk taking. In addition, the compensation and benefits of Control Functions are determined in a way that preserves their objectivity and independence;
  • There is currently no outstanding stock-related compensation. And there are no compensation arrangements encompassing claw backs or deferrals of payments, save for matters resulting from applicable laws and regulations;
  • Amounts of compensation paid annually are disclosed in accordance with the International Financial Reporting Standards and with the provisions of Article 158 of the Lebanese Code of Commerce.