The Board Human Resources and Remuneration Committee (the BHRRC) consists of the following members whose profiles are given in the section on Board of Directors and Profiles.
Board membersMr K G D D Dheerasinghe*
Mr M P Jayawardena*
Mr S Swarnajothi*
Regular attendee by invitationMr S Renganathan
(Managing Director/Chief Executive Officer)
Participated in all deliberations except those matters impacting his own terms and conditions of employment
Secretary to the CommitteeMr U I S Tillakawardana
(Deputy General Manager – Human Resource Management)
*Independent Non-Executive Director
Attendance at Meetings
|Name||Eligible to attend/ Attended|
|Mr K G D D Dheerasinghe||03/03|
|Mr M P Jayawardena||03/03|
|Mr S Swarnajothi||03/03|
|Mr S Renganathan||03/03|
The Committee evaluated the performance of the Corporate Management in 2018 and made recommendations to the Board on Variable Pay Plan and annual increments.
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 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 are regularly reported to 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, 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 of the Bank.
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.
The Committee held three (3) meetings during the year under review.
The Committee determined the bonus payable for 2018 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 the Collective Agreement. Performance of the members of the Corporate Management during the financial year 2018 including that of the Managing Director/Chief Executive Officer, and the Chief Operating Officer were reviewed. At the conclusion of the review process for 2018, the Key Performance Areas and the respective KPIs of the Corporate Management members set for 2019 were carefully perused by the Committee and agreed on, subject to changes.
In keeping with practice, the staff loans applicable to all grades of permanent staff were revised with the approval of the Committee and the Board. This was done in consultation with the Employee Associations. Requests by the Pensioners for a revision of pension was considered and granted during the year. The Terms of Reference for the BHRRC was reviewed and recommended for final approval by the Board of Directors. The Succession Plan for the Treasury Department was reviewed by the BHRRC.
K G D D Dheerasinghe
Board Human Resources and Remuneration Committee
February 20, 2020