Composition of the Committee
Board Human Resources and Remuneration Committee (the BHRRC) consists of following members whose profiles are given in the section on Board of Directors and Profiles:
Mr K G D D Dheerasinghe* (Chairman)
Mr M P Jayawardena* (Director)
Mr S Swarnajothi* (Director)
*Independent Non-Executive Director
Regular attendees by invitation
Mr J Durairatnam, Managing Director/CEO participated in all deliberations, except those matters impacting his own terms and conditions of employment.
Secretary to the Committee
Mr U I S Tillakawardana
(Deputy General Manager –
Human Resource Management)
Meetings
Name | Eligible to attend/Attended |
Mr K G D D Dheerasinghe | 5/5 |
Mr M P Jayawardena | 5/5 |
Mr S Swarnajothi | 5/5 |
Mr J Durairatnam | 5/5 |
The Chairman of the Committee can convene a special meeting in the event a requirement arises, provided all members are given sufficient notice of such special meeting. The quorum for a meeting is two (2) members. Members of the Corporate Management may be invited to participate at the sittings of the Committee meetings as and when required by the Chairman, considering the topics for deliberation at such meeting. The proceedings of the Committee meetings were regularly reported to the Board of Directors.
This year we interviewed – based on the succession plan, suitable candidates to fill the vacancies in the Corporate Management and such recommendations were accordingly approved by the Board of Directors.
The overall focus of the Committee:
The Committee recognises rewards as one of the key drivers influencing employee behaviour, thereby impacting business results. Therefore, the reward programmes are designed to attract and retain and to motivate employees to perform by linking performance to demonstrable performance-based criteria. In this regard, the Committee evaluates the performance of the Managing Director and KMP against the pre-agreed targets and goals that balance short-term and long-term financial and strategic objectives.
The Bank’s variable (bonus) pay plan is determined according to the overall achievements of the Bank and pre-agreed individual targets, which are based on various performance parameters. The level of variable pay is set to ensure that individual rewards reflect the performance of the Bank overall, the particular business unit and individual performance. The Committee makes appropriate adjustments to the bonus pool in the event of over or under achievement against predetermined targets. In this regard, the Committee can seek external independent professional advice on matters falling within its purview.
Further, the Committee may seek external agencies to carry out salary surveys to determine the salaries paid to staff vis-à-vis the market position, enabling the Committee to make informed decisions regarding the salaries in the Bank.
Evaluate, assess, decide and recommend to the Board, matters that may affect the Human Resource Management of the Bank specifically including:
The Chairman of the Committee can convene a special meeting in the event a requirement arises provided all members are given sufficient notice of such special meeting. The quorum for a meeting is two (2) members. Members of the Corporate Management are invited to participate at the sittings of the Committee meetings as and when required by the Chairman, considering the topics for deliberation at such meeting. The proceedings of the Committee meetings are regularly reported to the Board of Directors.
The Committee held five (5) meetings during the year under review. During the year, the Committee interviewed – based on the succession plan, suitable candidates to fill the vacancies in the Corporate Management and such recommendations were accordingly approved by the Board of Directors. The changes that took place in the Key Management Positions during the year, and the ability of the Bank to ensure a smooth transition in each of these cases, signify the importance of and the attention paid to the talent management process of the Bank. In all promotions to the Corporate Management grade, the Committee applied previously approved leadership competency frame work to judge the suitability of the candidates.
Further, the Committee determined the bonus payable for 2016 performance according to the Variable Pay Plan (VPP) for Executive staff and the grant of annual increments to the Executive staff who are not covered by Collective Agreement. Performance of the members of the Corporate Management during the financial year 2016 including that of MD and COO were reviewed. At the conclusion of the review process for 2016, the Key Performance Areas and the respective KPI’s of the Corporate Management members for 2017 were carefully perused by the Committee and agreed on, subject to changes.
The pensions and the outdoor medical scheme for the retired staff members of the bank, who are entitled to pension under the system which prevailed before year 2000, were also reviewed by the Committee on the recommendation of the MD and the proposal was recommended for the approved of the Board. A proposal to change the policy for the Widows & Orphans of pensioners, who had not contributed to the W&OP during their tenure at the Bank, was also recommended by the Committee for the approval of the Board.
The Committee also reviewed, suggested changes and recommended for the approval of the Board, revisions made to the Bank’s HR Policy manual. Committee also approved the nomination made by the Association of Commercial Bank Executives to the vacant position in the Board of Trustees of the Bank’s Retirement Pension Fund.
In view of the need to sign a fresh Collective Agreement with the Ceylon Bank Employees Union (CBEU) for a period of three years – with effect from January 1, 2018, the Committee ascertained the salary positions in the market through a survey and recommended for the Board approval the revisions proposed by the Management after negotiations with the CBEU.
K G D D Dheerasinghe
Chairman – Board Human Resources and Remuneration Committee
Colombo
February 23, 2018