CBL Life follows the Citadele Group's remuneration policy. 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 incorporates, among other elements, the adherence to the Code of Ethics of the Citadele Group and the alignment of stakeholder interests in the employee behavior.
The growth of assets under management is not the only or the main component of the Remuneration Policy, therefore the risk that individual motivations in making investment decisions may not be aligned with sustainability risk considerations is limited.
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, 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 CBL Life Sustainability Strategy is available here.
The Citadele Group's remuneration policy sets out qualitative and quantitative indicators to check the degree of achievement of objectives based on an employee's performance. Citadele 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 the employee and that may affect the risk profile and financial performance of Citadele Group and CBL Life, including sustainability risk. The performance targets set for employees performing internal control functions are defined to ensure that they are remunerated independently of the performance of the business areas they control.
Remuneration in the Citadele Group, including CBL Life, consists of fixed part of remuneration and variable part of remuneration, if applicable. Fixed part of remuneration is determined as a time salary according to the actual hours worked, irrespective of the amount of work performed. Variable part of remuneration is performance related. In the Citadele Group, the variable component may only consist of monetary costs (bonuses for the achievement of quantitative/qualitative indicators and targets, sales commissions, etc.).
Citadele Group has a Remuneration and Nomination Committee established by the Supervisory Board of AS "Citadele banka", which oversees matters related to the remuneration policy of Citadele Group and determines the basic principles of remuneration at the Citadele Group level.
Citadele Group follows developments closely and regularly introduces best practices and innovations in sustainable finance and environmental, social and governance (ESG) aspects into the Remuneration Policy.
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 31 May 2024.