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67

2018 Pillar 3 Disclosures

Information on remuneration

In particular, the circumstances under which a member of the Identified Staff in Cecabank must

repay part or all of the variable remuneration received to the bank are as follows:

1 In the event that Cecabank reformulates its financial statements on the condition that,

in accordance with this reformulation, a resulting lower variable remuneration is due to

be paid than the amount actually paid, or that no variable remuneration would be due in

accordance with the system of variable incentives implemented by the bank.

2. In the event that the payment of the variable remuneration was based on objectives

which were achieved as a direct or indirect consequence of:

(i) A fraudulent activity by the individual;

(ii) The occurrence of circumstances that lead to the lawful disciplinary dismissal of the

employee in accordance with the applicable employment legislation or, in the case of

a board member, the occurrence of circumstances that lead to the termination of their

role as director due to breach of their duties, an act or omission that causes damages to

the bank, or the combined occurrence of the circumstances required to entitle the bank

to bring a derivative suit against the individual in question;

(iii) In the event that, by their action or omission, the individual has caused damages to

Cecabank through fault or negligence.

(iv) In the event that the individual has been penalised for a serious and intentional breach

of any of Cecabank’s internal regulations that may be applicable.

(v) In the event that the individual has been penalised for a breach of the rules on order

and discipline contained in Title IV of Act 10/2014, of 26 June, on the regulation,

supervision and solvency of credit institution, classified as serious or extremely serious.

The sanction imposed must be confirmed and accredited by a senior competent body.

(vi) The increase in the capital requirements of the bank or its unit that is not foreseen

when generating exposures.

Remuneration system deferral clauses

Groups identified as 1 and 3

On the basis that the applicable Regulation requires credit institutions to comply with the

established requirements

“in a manner proportional to their size, nature, scope and the

complexity of their activities”,

this deferral requirement does not apply in cases in which

the total gross annual variable remuneration to be received within a year is more than

€50,000, or, despite being below this limit, it accounts for more than 50% of the gross annual

fixed remuneration of the person in question.

The deferred amount of the variable remuneration accrued shall be 40%, being paid in equal

parts, over a period of three financial years

In the case of the Chief Executive Officer, a deferral of 60% of the amount payable is applied,

in equal parts, over the 5 years following accrual.

Group 2

There is a deferral of the variable remuneration accrued in accordance with the following: 50%

will be paid in cash upon conclusion and evaluation of the result for the financial year, with the

remaining 50% to be paid in equal parts over the next 3 financial years after deferral.

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