PASHA_BANK_ANNUAL REPORT 2022

67 PASHA Bank 2022 Annual Report General Information Information on Management and Corporate Governance Principles Financial Information and Risk Management Review • 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 continued to work with mentors within 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 market salary survey. During the year, to minimize the effect of inflation increase, which started at the last quarter of 2021 and continued in the entirety of 2022 globally and in our country, both the number and diversity of sectoral remuneration and fringe benefits surveys conducted were increased. Three salary increases were realized during the year with proper salaries and fringe benefits to protect the employees against inflation. A gross wage policy is implemented at our Bank, and our employees are provided with fringe benefits such as health and life insurance, lunch and transportation allowances cards, transportation, and mobile phones and company’ car (according to the requirements of their positions), and employee support program services. Employees and senior executives may receive fixed and performance-based compensation in accordance with the Bank’s Remuneration Policy and Bonus Policy. The criteria for performance-based compensation are determined by the Remuneration Policy and the Bonus Policy. Total amount of financial benefits provided to the members of the Board of Directors and senior management as of 31 December 2022, including salaries, allowances and bonuses was TL 12,472 thousand. In this context, total amount paid to members of the Board of Directors and senior management in accordance with the Bank’s remuneration policy and bonus policy is disclosed in the notes to unconsolidated financial statements as of 31 December 2022, and independent audit report Section 5 Note 7 under the ‘Information on benefits provided to senior management’ article of ‘Disclosures related with the risk group of the Bank’. The payments made to senior management by the Bank are disclosed to public in line with the general practices not on an individual basis but collectively, covering the top management as a whole. Furthermore, Directors’ & Officers’ Liability Insurance with a limit of US 500 thousand is provided for the individual liabilities of the Board members and the Bank’s managers in case of wrongdoing while running the business. Operating with its experienced and competent staff, PASHA Bank supports women’s participation in business life with its female employees, who consist 67% of its senior level positions and 56% of all its employees. 61% of the employees hold Bachelor’s degrees and 30% hold Master’s degree.