Page 24 - BKT Annual Report 2024 EN

The remuneration

policy

The BKT remuneration policy is designed by Human Resources and approved by Board of Directors.

The Remuneration Policy is designed to
reward competitively the achievement of

long-term sustainable performance.

The remuneration policy aims at promoting effective FIXED PAY:
risk management and discouraging risk-taking beyond The base salary represents the fixed element of the
the risk appetite/ tolerance determined by the banks. reward and reflects the individual’s position, capability
to grow, skills and performance. Significant changes in
The salary and other employee benefits are defined with position responsibility or market conditions may be
the aim of establishing satisfactory and competitive linked with respective adjustments.
levels. Our Compensation Framework promotes, and
rewards sustainable performance and contributions VARIABLE PAY:
based on delivery, behaviour, and conduct, across all The variable pay represents the variable elements of
levels of the company. reward, which are optional and may refer to annual
bonus schemes and other incentive programs and may
Key principles of the remuneration framework include. vary from year to year. These types of compensation,
• Performance-Based Reward: when awarded, take into consideration individual
• Competitiveness performance along with the Department/Branch and
• Differentiated remuneration. the Bank’s performance. The variable compensation
• Employee Engagement. considers appropriate Key Performance Indicators
(KPIs) along with competences and in exceptional
The BKT Bank on annual basis identifies the functions / cases other conditions.
employees with material impact on Bank’s risk profile. The balance between the fixed and the variable
These employees are defined as “Identified Staff”. component is a priority which ensures the maintenance
The bank has identified the “Identified Staff” based of market competitiveness and the minimization of
on the Regulation No. 63, dated 14.11.2012 of the Bank the risk undertaken. The principle of not undertaking
Albania “On the core management principles of banks excessive risk is ensured by the existing Committees/
and branches of foreign banks and the criteria on the Approval authorities which operate according to
approval of their administrators”. specific procedures and are established bodies.

The Bank’s reward package consists of three key OTHER BENEFITS
components: The Bank provides other benefits awarded on the basis
1. Fixed Pay of individual employment contracts and local market
2. Variable Pay practice. This includes but is not limited to the provision
3. Other Benefits of financial allowances, fringe benefits and other
benefits, all of which are determined, calculated and
paid in line with internal bank policies and procedures.

24 BANKA KOMBËTARE TREGTARE