Corporate Governance

Key Principles of the remuneration system

The remuneration system in the bank is based on the following principles:

Integration: being one of the components of the comprehensive HR management system, which, together with other elements ensures implementation of the Bank's HR strategy.
Fairness:establishing an interrelation between the compensation of the Bank's employees and the job levels.
Competitiveness: ensuring an interrelation between the compensation of the Bank's employees and the market levels in the region.
Performance-Based Pay:setting an interrelation between the compensation of the Bank's employees and individual performance of the employee, achievement of planned Key Performance Indicators (KPI) of subdivision and business goals of the Bank.
Alignment: ensuring compliance of the remuneration system is in line with the scope and nature of Bank's operations, performance results, level and combination of risks taken, as well as the Bank's risk appetite.
Compliance: complying with the legislation of the Republic of Azerbaijan, as well as the rules and regulations of the Central Bank of the Republic of Azerbaijan;
Efficiency:being based on Bank’s long term operational results and profitability, as well as on the bank’s strategic goals and to ensure the non-obtainment of income in the short term due to the assumption of long-term risks;
Prevention of Conflicts of Interest: ensuring the implementation of adequate measures to prevent conflicts of interest, as well as an independent and transparent decision-making process and accountability system.

Updated 26.09.2024