Remuneration policy

JSC "CBL Atklatais pensiju fonds" (hereinafter – the Pension fund) and Citadele banka are part of the Citadele Group, where Citadele banka AS is the parent company of the Group. Pension fund follows the remuneration policy approved by the Group. The Citadele Group is committed to fair and reasonable remuneration practices and policies to promote the long-term sustainability and development of the business and to achieve the best interests of both Citadele Group and its employees. The remuneration policy includes, among other things, requirements to comply with the Code of Ethics of the Citadele Group, as well as norms to align employee behaviour with the interests of a wider range of the Citadele Group stakeholders.

The Group's Remuneration Policy is aligned with the integration of sustainability risks and details of how sustainability risks considered are disclosed here (In Latvian).

Sustainability is an integral part of Citadele's remuneration policy, reflecting our commitment to sound risk management and ethical business practices.

The Group has prepared Information on how remuneration policy is consistent with the integration of sustainability risks (In Latvian), which discloses information on:

  • integration of sustainability risks and information on how sustainability risks are considered in the remuneration policy;
  • linking executive and employee remuneration to the achievement of sustainability objectives and long-term value creation;
  • specific sustainability performance indicators on sustainability factors;
  • sustainability outcomes to be achieved.

The priority sustainability objectives are linked to our business and sustainability strategy for the next three years and cover the areas where we have the greatest impact. Information on the Group’s and Pension fund Sustainability Strategy is available here.

The Group's remuneration policy sets out qualitative and quantitative indicators to check the degree of achievement of objectives based on employee performance. The Group defines the indicators for process-oriented objectives as: time spent on customer service, paperwork; support to customers with green transition; indicators related to regulatory compliance, i.e. indicators related to compliance with regulations and restrictions that are binding on employees and that may affect the risk profile and financial performance of the Group/ Pension fund, including sustainability risk. The performance targets set for employees performing internal control functions (risk control, compliance and internal audit functions) are designed to ensure that they are remunerated independently of the performance of the business areas they control.

The remuneration in the Group companies, including the Pension fund, consists of fixed and variable remuneration components, if such are applied. 

The fixed remuneration component is established as a time-based salary corresponding to the hours actually worked irrespective of the volume of work performed.

The variable remuneration component depends on performance results. Within the Group, the variable remuneration component can be paid only in cash (bonuses for achieving quantitative/ qualitative targets, sales commissions, etc.).

For more details on the Remuneration Policy, including its objectives, elements of the remuneration structure, principles for determining fixed and variable remuneration, sustainability risk management and the long-term incentive plan, see the Group's remuneration reports under Remuneration Report.

Information updated on May 30, 2024