Integration of sustainability-related performance in incentive schemes (GOV‑3)
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Integration of sustainability-related performance in incentive schemesGOV-3Integration of sustainability-related performance in incentive schemes
Incentive Programs and Remuneration Policies Related to Sustainability Issues
The remuneration policies for the Bank’s management ensure an appropriate level of compensation for the Management Board, Supervisory Board, and key members of senior management. The adopted principles enable the recruitment, retention, and motivation of individuals with the competencies necessary for effectively managing and overseeing the Bank.
The remuneration of the Management Board and Supervisory Board is governed by two documents: the “Remuneration Policy for Members of the Management Board of Santander Bank Polska S.A.” and the “Remuneration Policy for Members of the Supervisory Board of Santander Bank Polska S.A.” These policies include a link between remuneration of the Management Board salaries and the achievement of sustainability goals. The ESG component is one of the qualitative factors considered when calculating the bonus pool for Management Board, with a weight ranging from -5% to +5% of variable remuneration. In the context of climate targets, the evaluation takes into account metrics such as the level of implementation of the sustainable finance agenda and progress on Banco Santander Group’s global climate agenda, including Net Zero efforts.
The Bank also has a long-term incentive program based on the Bank’s shares, which incorporates ESG goals as one of the three key evaluation elements regarding the retention award. The weight of ESG goals within the program is 20%. This includes indicators such as the number of women in managerial positions and the gender pay gap (EPG/GPG).
It is worth noting that all Bank employees, in line with the new strategy, have mandatory goals related to the “Total Responsibility” direction as one of the key pillars.
The conditions of incentive programs, including ESG and climate goals, are approved and updated at the level of the Bank’s Supervisory Board. The remuneration of Supervisory Board members is fixed and is not linked to the achievement of ESG or climate goals.
More details on the remuneration of the Supervisory and Management Boards, the Incentive Program, and Bank shares held by Members of the Management Board can be found in the Chapter XII “Statement on corporate governance for 2024”.
