The remuneration principles are set forth in the Remuneration Policy of mBank S.A. The Policy was introduced, among others, in order to build high commitment of employees by providing them with a remuneration package that is adequate to the market and the input of work, retain top employees in the organisation and attract talented people through the internship and apprenticeship programmes.
The Policy also stipulates the principles guaranteeing the protection of rights and interests of bank clients and preventing conflicts of interest. The Management Board is responsible for the development, implementation and observance of the Policy. The Supervisory Board approves the document, consulting it with the Remuneration Committee, if in doubt. Employees holding managerial positions are also obliged to follow the Remuneration Policy for Employees Having a Material Impact on the Risk Profile of mBank S.A.
The bank’s remuneration management system is designed to:
1/ protect the rights and interests of the bank’s clients and prevent conflicts of interest – we remunerate employees and appraise their performance to ensure that monetary and non-monetary rewards do not encourage them to favour own interest or the bank’s interest to the detriment of the bank’s clients;
2/ support appropriate and effective risk management in mBank Group without encouraging excessive risk taking beyond the risk appetite approved by the supervisory board;
3/ build strong employee engagement by providing a market-based remuneration package adequate to the workload (with a focus on the future and competition, where remuneration is based on the concept of total pay)
4/ retain best performers (by creating optimum work conditions) and attract new talents (intern and trainee programmes);
5/ ensure that the remuneration budget is cost efficient (by enabling flexible management of remuneration in order to optimise the use of the available budget).
| Ratio of basic salary of women to men (mBank) | 2018 | 2019 | 2020 |
|---|---|---|---|
| senior management | 86% | 77% | 69% |
| middle management | 82% | 82% | 79% |
| other employees | 74% | 75% | 76% |
| Ratio of remuneration of women to men (mBank) | 2018 | 2019 | 2020 |
| senior management | 86% | 74% | 62% |
| middle management | 78% | 79% | 78% |
| other employees | 72% | 74% | 74% |
Remuneration structure pictured above is strongly impacted by the higher number of women employed on the operational positions, whereas managerial positions are dominated by men. Moreover, in 2020 the bank has undergone significant structural adjustments which exacerbated the gap, particularly among the senior managers but also among middle managers. Remuneration regulations have been notably limited due to the pandemic and the necessity for saving, and as a result we haven’t observed changes in this regard among other employees. The remuneration inequality among senior managers has been negatively impacted by the departure of Vice-President of the Management Board, Lidia Jabłonowska-Luba.
There are initiatives pursued at mBank aiming at equalizing remuneration on comparable positions. At the same time we strive to facilitate career promotions among women. In the long term horizon we expect these measures to diminish average remuneration differences between men and women. In the short term horizon – comparing 2020 to 2019 – challenges presented by the expanses led to exponential structural changes and significant restriction of remuneration alterations. It did not impact positively the efforts to diminish inequalities between remuneration of women and men.