Remuneration to Directors and Executives

Remuneration to Directors

The Bank has established a set of well-defined and transparent remuneration policies for directors. The Human Resources and Remuneration Committee is responsible for reviewing these policies, taking into consideration the appropriateness of remuneration with respect to the scope of responsibilities of each director, long-term strategies and targets to ensure that the Bank’s remuneration is comparable to that of other commercial banks.

The General Meeting of Shareholders No. 107, on April 4, 2019, approved the increase in remuneration rate for directors for the Board of Directors Meeting, the payment of remuneration for Risk Oversight Committee members appointed to replace the Risk Management Committee members following the dissolution of Risk Management Committee, effective October 1, 2018 onwards, and the remuneration for Independent Directors, Audit Committee members, Corporate Governance Committee members, Human Resources and Remuneration Committee members, the Legal Adviser and Directors’ Bonus for 2019, to remain at the same rate as that of 2018, which shall remain effective until a General Meeting of Shareholders determines otherwise. A director who is also a member of other Board Committees shall receive additional remuneration in accordance with the increased responsibilities, except that the executive directors receive no remuneration for their membership in a Board Committee, as follows:

  1. Remuneration for directors for the Board of Directors Meeting

    • Chairman of the Board Baht 250,000 per person/month
    • Vice Chairperson Baht 200,000 per person/month
    • Director Baht 150,000 per person/month
  2. Remuneration for Independent Directors

    • Lead Independent Director Baht 100,000 per person/month
    • Member Baht 70,000 per person/month
  3. Remuneration for Board Committees:

    1. The Audit Committee

      • Chairman Baht 90,000 per person/month
      • Member Baht 60,000 per person/month
    2. The Corporate Governance Committee

      • Chairperson Baht 50,000 per person/month
      • Member Baht 36,000 per person/month
    3. The Human Resources and Remuneration Committee

      • Chairperson Baht 50,000 per person/month
      • Member Baht 36,000 per person/month
    4. The Risk Oversight Committee

      • Chairperson Baht 50,000 per person/month
      • Member Baht 36,000 per person/month
  4. Remuneration for the Legal Adviser Baht 330,000 per person/month

  5. Bonus for directors at the rate of 0.5 percent of dividend payments.

    Details of remuneration to directors in 2019 are shown as follows:

    1. Remuneration

      Directors received remuneration as directors, Independent Directors and members of the Audit Committee, Corporate Governance Committee, Human Resources and Remuneration Committee, Risk Oversight Committee, and as Legal Adviser, together with a bonus at the rate of 0.5 percent of the dividend payments, totaling Baht 101,628,203. These amounts included remuneration for members of the Risk Oversight Committee paid from October to December 2018 totaling Baht 582,000.

    2. Other remuneration

      None


Remuneration to Executives

The Human Resources and Remuneration Committee shall propose remuneration of executives to the Board of Directors for consideration and approval in accordance with the Bank policies. Remuneration for executives, including that for Chief Executive Officer and Presidents are tied directly to short-and-long term performance of the Bank ,which reflects our status as being a sustainable bank, relative to four key performance indicators as specified in the Balance Scorecard, regarding finance, customers, development of operational process and risk management, and human capital development, plus indicators for being a sustainable banks on the economy, society and the environment. Such indicators include ROA, ROE, net interest margin, non-interest income growth, cost to income ratio, loan growth, customer satisfaction, growth in environmental project financing, reduction of GHG emissions, feedback from employee engagement survey, plus operating results against our peers in all dimensions, i.e. total shareholder return, ranking in most preferred platform digital banking service, enhanced competitiveness and sustainable business operations over the long run. Such indicators will ensure sustainable success of the Bank under transparent regulations and scopes of responsibility, that reflect related risks, as well as the competitiveness of the Bank vis-à-vis other leading financial institutions in Thailand. From 2017-2019, senior executives (including Chief Executive Officer and Presidents) received fixed remuneration at a proportion of approximately 65-69 percent of all remuneration, and performance based remuneration was approximately 31-35 percent.

Details of remuneration to executives in 2019 are shown as follows:

  1. Remuneration

    Eexecutives in the position of First Senior Vice President or equivalent and higher, totaling 87 persons, received remuneration including salaries, living expenses, special contributions, and bonuses from the Bank, totaling Baht 1,035,245,074, while executives in the position of Senior Executive Vice President or equivalent and higher, totaling 13 persons, received remuneration including salaries, living expenses, special contributions, and bonuses from the Bank, totaling Baht 332,003,598.

  2. Other remuneration

    The Bank’s executives received benefits and other welfares under the Bank’s regulations, similar to other employees, such as healthcare and medical checkup expenses, as well as lloan welfares, plus provident funds. The Bank contributed Baht 29,181,295 to the provident funds for the Bank’s executives in the positions of First Senior Vice President or equivalent and higher, totaling 87 persons, and Baht 8,277,205 to the provident funds for the Bank’s executives in the positions of Senior Executive Vice President or equivalent and higher, totaling 13 persons.


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