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2018 Pillar 3 Disclosures
Information on remuneration
In addition, in the case of this group, a long-term oversight mechanism is established
(cumulative over 8 years) regarding the relationship between net profit obtained and the
amount of variable remuneration paid out (corresponding to that paid out in the current year,
plus the part corresponding to the deferral of previous years). Thus, the allocation of the
variable remuneration deferred in previous years will only be carried out if it does not exceed
the limit mentioned. The activation of this limit involves removing the right to receive any
excess that would have been produced.
Ratio between fixed and variable remuneration
In general terms, for Cecabank personnel, the amount of variable remuneration per employee
must not exceed, as a rule, 20% of fixed remuneration, with the final variable being adjusted in
all cases to individual achievement of objectives and performance.
This percentage can be exceeded depending on the assigned responsibilities, achievement of set
objectives and performance of the employee, without exceeding 100% of fixed remuneration and
upon justification by the corresponding Area Director.
As regards the Identified Staff, the variable remuneration is limited to a maximum of 100% with
respect to fixed remuneration, unless authorised by the General Assembly of Shareholders, in
which case it may reach 200%.
The General Assembly of Shareholders of 20 March 2018 approved a level of variable remuneration
of up to 200% of fixed remuneration for certain positions.
Payment of variable remuneration in non-
pecuniary instruments and withholding periods
During 2017, according to the provisions of the EBA Guidelines on Sound Remuneration Policies
by virtue of articles 74.3, and 75.2 of Directive 2013/36/EU and the disclosure of information by
virtue of article 450 of Regulation (EU) no. 575/2013, the Remuneration Policy was amended to
include remuneration mechanisms based on non-pecuniary instruments.
Members of Groups 2 and 3 that receive an annual variable remuneration higher than 50,000
euros, or those whose amount is lower but over 50% of the annual gross fixed remuneration, as
well as the CEO and all the members of the Steering Committee, shall receive 50% of their gross
variable remuneration in non-pecuniary instruments, which will be subject to a withholding
period of 1 year, except for the CEO, whose withholding period will be 2 years.
Given that Cecabank is not a listed company, the Board of Directors, at the proposal of the
Remuneration Committee, has decided to implement a system of phantom shares, the value of
which will depend on the evolution of the bank’s own funds.
Main parameters and purpose of the variable
remuneration plans
Cecabank believes that its professionals are a key factor in achieving the bank’s objectives and it
is aware of the impact of remuneration on motivation and talent retention.
11.1.6
11.1.7
11.1.8
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