PASHA_BANK ANNUAL REPORT 2021

General Information Financial Information and Risk Management Review Information on Management and Corporate Governance Principles Employee Loyalty Chess Club, Basketball Club, Music Club were set up within the Social Activities Team. Various events were held by the Social Activities Team which was set up by the employees. Employee Support Program was launched to help our employees, which are the most valuable assets of our Bank, with the challenging business and private life events that affect their performance and efficiency, thus supporting them to provide more added value by keeping their ambitions alive in their business lives. This program provides 24/7 advisory and informative services to employees and their family members to consult in all areas that may create personal stress or anything that needs to be inquired. Various workshops were organized to keep employee communication close and to share developments regarding the Bank. Strategy meetings were held with the employees at managerial positions. Collaboration with Universities and Internship Programs Collaboration with Istinye University was established to prepare university students for business life and to contribute to their development. In this context, Training Programs were held in four different topics. Internship opportunities were provided to students with career goals in banking and finance to contribute to their development, thus leading to hire new talents. Transparent Performance Evaluations and Career Planning Promotion and career planning of our employees are planned transparently by the Human Resources Committee on a periodic basis. High performance and innovation are supported and encouraged by the Bank’s human resources policy. A career management system based on enriching career opportunities has been adopted by giving priority to employees with consideration for positions. In‑house rotational and promotional practices are designed to contribute to the career developments of employees, and to meet the human resources needs of the Bank in a rapid and effective manner. In promotions to senior positions, the Assessment Center Application service is obtained from a professional consulting firm in order to conduct a fair and objective evaluation. In 2021, 11% of the employees were promoted. In performance evaluations, it was determined that better results are achieved for both employees and the Bank by managing individual performance in line with bank targets and strategies. Performance evaluations of employees are performed with a transparent management perspective. Our Bank implements an “Open Performance Assessment System.” The following criteria are taken into consideration in periodic performance evaluations: · Financial and Non‑Financial Performance goals that support employee’s continuous development; · Commitment to corporate values and compliance with Bank policies/procedures, · Contribution with respect to compliance with risk management and legislation, · Suitability for the Bank and for the competencies required by the task. The results of performance evaluations are used in career, training and compensation planning. Talent Management Programs In order to raise new generation leaders within PASHA Group Companies, the Bank worked with a professional consultancy firm. In this context, mentors were identified within the Group to contribute in development of managerial candidates who are at the talent pool of the Group. Moreover, leadership program was planned to develop new generation competencies of the leaders of our Bank. Remuneration Policy PASHA Bank’s Remuneration Policy is supported by a fair, internal compensation strategy based on industry salary survey. Practices in the industry related to remuneration and fringe benefits have been monitored, and necessary arrangements have been made regarding annual wage increases and other fringe benefits under existing practices. Human Resources Practices