PASHA_BANK_ANNUAL REPORT 2022

60 PASHA Bank 2022 Annual Report Nomination and Remuneration Committee The Nomination and Remuneration Committee was established to monitor and supervise remuneration policies, processes and practices on behalf of the Board of Directors for ensuring an independent and effective remuneration system in line with the provisions of the Banking Law and the Bylaw on the Banks’ Corporate Governance Principles. The Committee was composed of the members named below as at 31 December 2022. Name-Surname Committee Position Farid Mammadov Chairperson Jalal Gasimov Member H. Cenk Eynehan Member Nomination and Remuneration Committee carries out its activities within the framework of the Nomination and Remuneration Committee Regulation that was enforced on 6 July 2021. The Nomination and Remuneration Committee convenes as required by business needs, and at least once a year. Board of Directors’ Evaluation of Committee Effectiveness In 2022, the Nomination and Remuneration Committee reviewed PASHA Bank’s policies and practices regarding remuneration systematics and submitted its assessment report on such matters to the Board of Directors. On another note, the Committee reviewed key performance indicators for 2022 and suggested amendments thereto, performance scorecards of the CEO and Deputy CEOs, eligibility for PASHA Bank’s bonus pool and payment of success bonuses to employees, the personnel promotions, 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 PASHA Bank’s employees and the annual report, which includes PASHA Bank’s remuneration policies and practices for the period January-December 2022, the policies implemented within the Group, and the proposal for the candidate independent board member. Human Resources Committee The Committee was established in accordance with the Banking Law and Regulation on Corporate Governance Principles of Banks to monitor remuneration policies, processes and applications on behalf of the Board of Directors to attain an independent and effective remuneration system. Human Resources Committee was composed of the members named below as at 31 December 2022. Name-Surname Committee Position Farid Mammadov Chairperson Shahin Mammadov Member H. Cenk Eynehan Member Human Resources Committee conducted its activities within the framework set by the Human Resources Committee Regulation which became effective at 6 July 2021 and updated on 28 November 2022. Human Resources Committee convenes once at a minimum during the year, or as frequent as the business need arises. Information on the Activities of the Board of Directors and the Committees Meeting Date Number of Attending Members Type of Meeting 18/03/2022 3 Physical Attendance 27/05/2022 3 Physical Attendance 13/09/2022 3 Electronic