PASHA_BANK_ANNUAL REPORT 2022

61 PASHA Bank 2022 Annual Report General Information Information on Management and Corporate Governance Principles Financial Information and Risk Management Review Board of Directors’ Evaluation of Committee Effectiveness During the period, based on periodic reports prepared by the Human Resources Department, the Human Resources Committee evaluated recruitment activities, demographic statistics, performance management, training and development activities, employee turnover analyses, key performance indicators for HR Strategy practices for 2021-2022 period, current status of planned strategic projects, remote working conditions during the COVID-19 pandemic, hybrid working model, activities to increase employee loyalty and suggested projects, as well as updated policies and similar internal regulations within the scope of annual review activities. Strategy and Budget Committee The Strategy and Budget Committee was established to provide assurance on the preparation of PASHA 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 Shahin Mammadov Chairperson Farid Mammadov Member H. Cenk Eynehan Member Strategy and Budget Committee carries out its activities in accordance with the Strategy and Budget Committee Regulation enforced on 23 September 2016 and most recently amended on 10 November 2022. The Committee meets as often as business needs require and at least once every three months. Board of Directors’ Evaluation of Committee Effectiveness The Strategy and Budget Committee presented the results of its activities to the Board of Directors in quarterly activity reports. The Strategy and Budget Committee held six meetings during the reporting period and passed decisions regarding the agenda items. In the meetings, the Committee reviewed the Bank’s 2023 budget and macroeconomic and market projections in connection with budgeting, interim financial performance and financial statements, year-end forecasts, internal documents about the Committee, and macroeconomic projections, execution plans for strategic initiatives and projects carried out, Information Systems Strategy Plan for the 2021- 2023 period, Talent Development and Retention Strategy, the Committee’s periodic activity reports, key performance indicators, subordinated loan, and the market and competitive environment. Meeting Date Number of Attending Members Type of Meeting 25/02/2022 3 Physical Attendance 20/05/2022 3 Electronic 20/07/2022 3 Electronic 17/11/2022 2 Electronic Meeting Date Number of Attending Members Type of Meeting 31/01/2022 3 Electronic 29/04/2022 3 Physical Attendance 28/07/2022 3 Electronic 21/10/2022 2 Electronic 10/11/2022 3 Electronic 21/11/2022 2 Electronic