Investing in human capital

In 2024, the following training projects were implemented:

We achieve these goals through:

• Summer Internship Program “Akademia Żubra” addressed to students and graduates of universities. The program is implemented for a period of 2 months – it is a good start for students who want to learn about the functioning of one of the Bank’s business areas. Participants actively support Bank’s units and implement individual projects. During the Program, the intern can become familiar with work in Retail Banking branches, SME and Corporate Business Centers,
• “Banking Champions” It is a program that allows interns to gain unique competences and practical experience in the area of finance and banking. Participants of the program have the opportunity to expand their skills in areas such as risk management, corporate and investment banking, data science, data analysis and big data, as well as new technologies and development,
• IT Banking Champions – offer of internships in the IT area. The program is addressed to students of IT universities in Poland who want to create innovative solutions in the banking sector. Participants have the opportunity to cooperate on projects of the most omnichannel bank in Poland.

The compensation strategy was developed in line with the business standards and values underlying the Bank’s mission and reflected in the internal regulations as well as it constitutes the basis for enhancing and protecting the Bank’s reputation and creating long term value for all the stakeholders. The key regulation in this area is the Remuneration Policy of Bank Polska Kasa Opieki Spółka Akcyjna, the last update of which was approved by the Supervisory Board of the Bank by resolution of December 16, 2022. This policy reflects the mission and values in the Bank’s approach to remuneration systems, including:

• defines the compensation pillars, management of its structure, corporate and organizational processes,
• confirms the compliance requirements of the compensation systems with the generally binding law,
• defines the principles of market practice monitoring, and the approach to the matter of compensation systems which guarantees the sustainability of the Bank’s functioning.

Sustainable results contributing to the creation of long-term value for stakeholders relate to the actual results achieved and how they are achieved, with a view to measuring results consistent with shareholders’ interests and profitability principles based on safe risk levels, sustainable risk management practices and a multi-dimensional performance analysis and quality of operation.

In order to ensure the competitiveness of the remuneration structures, as well as their transparency and an effective and fair remuneration system, the Bank monitors market trends in terms of forms of remuneration and the level of remuneration offered on the market. Decisions on the remuneration system at the Bank are made taking into account the available data on market trends in the area of fixed remuneration as well as incentive systems. Such data is obtained from consulting companies offering financial sector analyzes..In 2024, the Bank conducted analyses of wage coherence between women and men in identical positions, in order to compensate for the pay gap existing at the Bank.

The Bank also has a Remuneration Policy for Members of Supervisory Board of the Bank and the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna, which sets out the framework principles and rules for determining, monitoring and controlling the remuneration rules and practices applied by the Bank in relation to the Members of its Supervisory Board and the Management Board of the Bank.

The Remuneration Policy for Members of the Supervisory Board of the Bank and the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna supports proper and effective risk management and does not encourage taking excessive risks exceeding the acceptable general risk level approved by the Bank’s Supervisory Board; implementation of the Bank’s management strategy and risk management strategy; mechanisms for managing conflicts of interest occurring in the Bank’s operations and limiting them; as well as ensuring that remuneration and any related terms and conditions of employment that affect remuneration, including those relating to conditions for granting and payment of remuneration, are gender neutral, i.e. they are not differentiated on the basis of gender.

As part of the remuneration system, employees are offered non-wage benefits ensuring fair treatment and consistency of the remuneration system.

Each year, a report on the functioning of the Remuneration Policy at the Bank is prepared, which is then presented at the General Meeting of Shareholders in order to assess whether the functioning of the Remuneration Policy in force at the Bank, supports the development and security of the Bank’s operations.

Information regarding remuneration value of each Member of the Management Board is presented in the point 10, the section of the Management Board and the Supervisory Board Remuneration.

The Subsidiaries of the Bank’s Capital Group have remuneration policies adapted to the size and specificity of their activities and the remuneration principles.

In the Bank, there are three main incentive systems: an Executive Variable Compensation System, a System based on Management by Objectives (MBO), and a system based on provisions of Corporate Collective Labour Agreement, which is based on quarterly bonuses, bonus for retail sales forces and incentive reward.

The top management is covered by a variable remuneration system dedicated to people who have a significant impact on the Bank’s risk profile. The aim of the System is to support the execution of the Bank’s operational strategy and to mitigate excessive risk conflicts of interest. Participant covered by the system may receive a variable compensation based on a bonus pool approach. The System provides a comprehensive performance measurement at individual level, level of his/her organizational unit and results of the entire Bank, as well as verification of the participant’s compliant behaviour with respect to law provisions, and standards adopted by the Bank and risk assessment. For reinforcement of care for long-term welfare of the Bank, under the system at least 50% of variable remuneration is provided in phantom shares based on the value of the Bank shares and at least 40% of the bonus is deferrable and paid after the end of the evaluation period it is payable for.

Annual goals set for the Bank’s top management as part of the incentive system ensure consistency with the strategy of introducing sustainable development risks into the business in the investment decision-making process, and are consistent with the goals of the Bank’s business strategy and risk strategy, including environmental, social and governance risks. (ESG risk), are consistent with the Bank’s corporate culture and values, risk culture, including in relation to the long-term interests of the institution, as well as with the measures used to prevent conflicts of interest, and should not encourage excessive risk-taking.

The Bank has a Gender equality and diversity policy with regard to members of the Supervisory Board, members of the Management Board and persons holding Key Functions at Bank Polska Kasa Opieki Spółka Akcyjna (Gender equality and diversity policy) introduced on December 18, 2020 by the Order of the President of the Management Board, which defines the strategy in the scope of managing diversity of the Bank’s employees, including diversity with regard to the appointment of members of the Supervisory Board, members of the Management Board and persons performing Key Functions at the Bank. The gender equality and diversity policy define guidelines aimed at ensuring that the Bank’s employees can manage their careers, achieve success and evaluate their work on the basis of individual achievements, regardless of gender.

The purpose of the Bank’s diversity strategy referred to in the Gender Equality and Diversity Policy is to ensure high-quality performance of tasks by the Bank’s employees, including the selection of competent persons to perform functions in the Supervisory Board, Management Board and Key Functions at the Bank, first of all applying objective substantive criteria and taking into account the benefits of diversity.

The gender equality and diversity policy, in accordance with the legislative process in force at the Bank, was adopted by the Bank’s Management Board and approved by the Supervisory Board and in relation to Members of the Supervisory Board, by the General Meeting of Shareholders.

Gender equality enables the Bank’s employees to manage their career, achieve success and evaluate their work on the basis of individual achievements, regardless of gender.

In 2024 the cooperation between the Bank and Trade Unions in the range of consultation, negotiations and other agreements were led pursuant to the rules defined in the labour law, with respect for both sides’ interests and social dialog rules. In 2024, a total of 17 one- or two-day meetings were held with Trade Union Organizations and a total of 3 meetings with the Workers’ Council.

During year 2024, there were four group disputes in the Bank, initiated in 2016, 2019, 2021 and in 2024. In terms of the 2016 group dispute, there is a signed protocol of divergence.

Bank, in the mutual relations with Trade Union organizations guided the principles of good will to achieve the best solutions in the range of collective labour law both for employees and for the Bank.