Banks Remuneration Rules

Disclosure Requirements 54. Banks shall disclose in the Bank’s Annual Financial Statements the aggregate quantitative information on remuneration paid to various categories of employees and their number with breakup of fixed and variable components and the forms of payment. The categorization of employees includes at a minimum senior management, employees engaged in control functions and outsourced employees. 55. Banks shall disclose in its Annual Financial Statements the salient features of its Remuneration Policy and its implications on the bank’s risk profile as well as the composition and the mandate of the Nomination and Remuneration Committee. Such disclosure should also provide information on the overall design of remuneration system and the manner of its implementation, description of the manner of risk adjustment, linkage of remuneration with actual performance, deferral policy and vesting criteria, parameters for allocating cash versus other forms of remuneration, and achievement of the stated policy objectives. 5.2 Compliance Report 56. Banks are required to submit a semiannual Compliance Report to SAMA that includes an assessment of the bank’s existing remuneration practices and alignment with these rules; by assuring full compliance, or highlighting gaps along with an action plan (how to cover the gap, responsible persons/ department and target date) in addition to updates on the progress of the action plan until all gaps are covered. The report should include the items mentioned in Appendix-I . 57. Banks shall submit, along-with the Compliance Report, the following about all types of remuneration: a. Details of total remuneration including break-up of fixed and variable remuneration, and remuneration adjustments as per Appendix-II; b. Details of remuneration of the top 12 highly compensated employees of the bank as per Appendix-III. 58. Banks shall submit its semiannual Compliance Report for the second half year before March 31, and for the first half of the year before August 31. 59. Banks shall submit the results of the annual review of the remuneration, and any consequential actions before March 31 of each year.