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2018 Pillar 3 Disclosures
Information on remuneration
Additionally, in accordance with the provisions of Delegated Regulation 604/2014 of 4 March, the
members of the Board of Directors serving the same and not entrusted with executive functions
must also be considered as members of the Identified Staff.
Situation at 31/12/2018
Number of people
Group 1
8
Group 2
40
Group 3
9
Relationship with the bank’s profit
The objective of Cecabank’s annual variable remuneration system is to establish a relationship
between the profit obtained and the amount of remuneration, which must furthermore
compensate the level of achievement, performance, effort and responsibility, and be aligned with
the long-term interests of the bank, without involving any excessive risk-taking.
The potential variable remuneration is established taking into account the achievement of
objectives and the performance evaluation, based on certain reference scales that are set out for
each functional level, taking into account the competitiveness criteria.
The variable remuneration charge is also determined by whether the budget is attained.
With regard to the control units, the method for establishing the remuneration of the key figures
does not compromise their objectivity and independence, nor create conflicts of interest in their
function of monitoring and advising.
Trading and Equity Sales Divisions
The variable remuneration model for the Cecabank Trading and Equity Sales Divisions comprises
the distribution of a percentage of the profit obtained by the Divisions, after expenses. In
addition, corrective elements are applied that enable the final amounts paid to be adjusted
(upwards or downwards). These reductions are made according to: (i) the degree of difficulty of
the different desks in the process of obtaining profit, and (ii) an assessment of any exceptional
situations which may have occurred during the process, as set out in the Performance
Assessment, at both the quantitative and qualitative levels.
Therefore, variable remuneration for the Trading and Equity Sales Divisions is determined by
whether profits are obtained, and whether they exceed the allocated budget. Distribution by
departments, panels, and individuals is carried out based on the contribution each has made to
the profits.
Characteristics of the remuneration system of
the identified staff
Risk tolerance as defined by the Board determines that remuneration policies have to reinforce
the control environment and incorporate incentives to keep the risk profile within the defined
tolerance levels, and thus help align the bank´s objectives with the assumed risk levels, and
avoid incurring inadequate levels of risk and promote their rigorous management.
11.1.4
11.1.5
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