PASHA BANK ENG 20

Strategy and Budget Committee The Strategy and Budget Committee was established to provide assurance on the preparation of the Bank’s business and strategy plans and annual budget in accordance with the strategy, operation and budget management processes approved by the controlling shareholder; to advise the Board of Directors, and to assist it in fulfilling its duties and responsibilities. The present structure of the committee is given below. Name-Surname Committee Position Jalal Gasimov Chairperson Farid Mammadov Member H. Cenk Eynehan Member The Committee carries out its activities in accordance with the Strategy and Budget Committee Regulation enforced on 23 September 2016 and most recently amended on 16 June 2020. The Committee meets as often as business needs require and at least once every three months. Evaluations Regarding the Activities of the Board of Directors and the Committees The graph below shows the distribution of agenda topics addressed by the Committee during 2020. Human Resources and Remuneration Committee Agenda Analysis 15% 15% 15% 16% 39% Fee and Bonus Payments Committee Activity Report Key Performance Indicators Senior Executives’ Performance Scorecards and Evaluations Internal Regulations Board of Directors’ Evaluation of Committee Effectiveness The Committee reviewed the regulation setting out its working principles, and presented suggested changes for approval to the Board of Directors. In 2019, the Human Resources and Remuneration Committee reviewed the Bank’s remuneration policy and practices regarding remuneration systematics and, in March 2020, submitted its assessment report and recommendations on such matters to the Board of Directors. On another note, the Committee reviewed key performance indicators for 2020 and suggested amendments thereto, performance scorecards of the CEO and Deputy CEOs, eligibility for the Bank’s bonus pool and payment of success bonuses to employees, the proposals to be made to the Board of Directors regarding the payments to Board Members and Executive Managers, annual increase rates on fixed salaries and fringe benefits of the Bank’s employees, the Onboarding Procedure put into implementation across the Group, the amended Human Resources Policy, Remuneration Policy, Bonus Policy, HR and Remuneration Committee Regulation, and the Disciplinary Regulation. The Committee convened once physically during the accounting period. Meeting Dates Number of Attending Members Type of Meeting 06 March 2020 4 Physical Attendance 54 Annual Report 2020 PASHA Bank Information on Management and Corporate Governance Practices