Remuneration and fringe benefits

Renumeration system

As an institution of public trust, the Bank carries out its activities with the utmost care, and pays special attention to the professional skills and ethics of its employees. Consequently, the Bank’s Management Board, with the active participation of the Supervisory Board, followed a remuneration policy that is an important element of the development and safety of the Bank’s functioning.

The Remuneration policy for Employees of the Bank and the PKO BP Group, adopted by resolution no. 42/2017 of the Supervisory Board of 14 June 2017, is a key internal document pertaining to the remuneration policy. The policy ensures a consistent remuneration system by:

  • introducing a remuneration system complying with market trends;
  • targeting optimum candidates for work;
  • adjusting remuneration mechanisms, tools and levels to the strategy and objectives of the Bank and the Bank’s Group;
  • making an allowance for the potential of the Bank’s Group to develop desirable remuneration mechanisms and remuneration levels;
  • defining fixed salaries based on job grading;
  • making the remuneration structure dependent on the performance and assessment of the employees’ competencies;
  • developing a sense of responsibility among employees for the tasks performed, assessed based on objective criteria;
  • guaranteeing that variable remuneration components are parameterized in such a way as to include the costs of risk, cost of capital and liquidity risk of the Bank and the Bank’s Group in the long-term perspective;
  • ensuring that remuneration components in cash or non-cash form do not encourage interested persons to favour their own interests or the interests of the Bank and companies of the Bank’s Group, to the detriment of customers.

The Collective Bargaining Agreement concluded with trade union organizations on 28 March 1994 (as amended) provides a basis for the following remuneration components due to the Bank’s employees:

  • basic salary;
  • allowances for overtime work as well as for work in especially onerous conditions and conditions harmful to health;
  • bonuses and awards for special professional achievements.

Depending on the employment level, the principles of remuneration of employees are specified in remuneration rules and in employment contracts or just in employment contracts. Additionally, the Collective Bargaining Agreement for the years 2015-2017, concluded with trade unions, was binding in KREDOBANK SA, in 2017.

In 2017, the following changes to the Bank’s remuneration policy took place:

  • The Supervisory Board of the Bank adopted the “Policy for remuneration of Employees of the PKO BP Bank and Group.” The Policy is superior to all other internal remuneration regulations of the Bank and the Bank’s Group. The purpose of the Policy is to ensure a consistent remuneration system, allowing for the adjustment of remuneration mechanisms and levels to individual position categories and local labour market conditions, as well as the economic and financial position of the Bank and companies of the Bank’s Group, as well as regulatory requirements of the Banking Law and the EBA.
  • Principles for employment and remuneration of Members of the Bank’s Management Board were adjusted to the requirements imposed on the Bank by the Act of 9 June 2016 on the terms for setting the remuneration of managers of certain companies, and provisions of the aforementioned Remuneration Policy resulting therefrom.


Basic salary

In the process of setting basic salaries, the Bank applies internal job grading categories. These categories are determined using an independent and objective scoring method. Jobs are evaluated on an ongoing basis, in particular in the case of major organizational changes in the Bank.

The Bank verifies the adequacy of basic salaries by regular benchmarking analyses carried out by specialised external entities.

In order to ensure the security of and control over the salaries, the Bank endeavours to avoid setting fixed remuneration components above the market level, while avoiding an excessive outflow of employees and increased costs of the staff turnover that could result from setting remuneration below the market level. In order to achieve the aforementioned objectives, the Bank monitors the turnover ratios for individual positions so as to potentially adjust the assumptions of the remuneration system in the event of negative employment variations.

A limited and precisely identified group of employees, defined in the Bank’s internal regulations, is authorised to define and change remuneration.

Variable remuneration

The process for awarding variable remuneration components in the Bank is governed by the Principles for setting variable remuneration components for persons in managerial positions in the Bank, Rules of variable remuneration components for Members of the Management Board and MRTs (Material Risk Takers), and in the Rules for awarding bonuses to employees of the Bank.

The process of awarding variable remuneration components is based primarily on bonus targets set within the framework of four bonus pillars:

Pillar I, the so-called MbO (Management by Objectives) covering managers and experts responsible for achieving objectives of key importance to the Bank. The MbO involves a bonus depending on the quality and degree of achieving the targets set.

Pillar II, the so-called BBP (Business Bonus Programme) –a bonus system, in which the bonus depends on the degree of completion of specific tasks related to sales and effectiveness. It covers the employees performing business tasks, mainly sales tasks in the area of corporate and investment banking, as well as debt collection tasks.

Pillar III, the so-called SBS (Sales Bonus System) has been designated for positions in retail branches selling banking products.

Pillar IV, the so-called ABS (Additional Bonus System), covers remaining employees not included in the MbO, BBP and SBS systems.

The purpose of the targets set is to guarantee that the risk related to the activities of the Bank is taken into account. All targets arise from target grids approved by the Management Board of the Bank that have to be cascaded down to employees of individual structures. MRTs are additionally responsible for special projects aimed at implementing the Bank’s strategy.

MRTs, as the persons having particular influence on the security level and stable development of the Bank, are subject to additional remuneration limitations. Variable remuneration components are awarded to MRTs, including the Management Board, for a given assessment period (calendar year), after settling bonus targets, in non-deferred and deferred form. In order to ensure the sustainability of results, it is possible to reduce deferred variable remuneration components in the event of a deterioration in the financial results, loss incurred by the Bank or deterioration in other variables.

Additionally, fifty percent of every component is paid in financial instruments, the value of which is linked to the value of the Bank’s shares. In the case of good and stable results, the Bank’s value grows, which results in an increase in the ultimate cash payment. Otherwise, the payment may be reduced. This mechanism encourages MRTs and Members of the Management Board to focus on the results and development of the Bank and the Bank’s Group.

The bonus parameters are set taking into account the position of the Bank and market benchmarks of the financial sector. Bonus parameters (bonus ratios, bonus adjustment ratios, target achievement level entitling to a bonus) for the Management Board could have been set by the Supervisory Board, and for MRTs and other employees – only by the President of the Management Board.

Dedicated periodic incentive solutions are introduced for projects of key importance to the security and development of the Bank.

Incentive and bonus systems, in the case of which the degree of achieving individual targets determines the bonus level, function in companies of the PKO Bank Polski SA. Group. The target setting method and allocation to a particular system depends on the tasks performed, including sales, tasks, and the size of the company. Managers of the majority of companies of the PKO Bank Polski SA Group and directors of selected companies of the Bank’s Group participate in the MbO system.

Additionally, in relation to Directive 2013/36/EU of the European Parliament and of the Council and the Commission Delegated Regulation (EU) No. 604/2014, the Bank introduced separate regulations setting the policy of variable remuneration components for persons in positions having significant influence on the Bank’s risk profile.

In 2017, the regulations setting the policy of variable remuneration components for positions having a significant influence on the risk profile also functioned in selected companies of the PKO Bank Polski SA Group.

The Bank and companies of the Bank’s Group offer a wide range of additional non-pay benefits, comparable to the average market offer, including:

Employee Pension Scheme (EPS) – this scheme offers the employees an opportunity of long-term saving in order to supplement their retirement income received from the obligatory pension system. The EPS is based on an agreement for a basic contribution made by the Bank and an additional contribution made by employees to investment funds managed by PKO TFI SA.

Additional health care to which the employees are entitled, including various service packages dedicated to certain position categories. Employees may also use the “Zdrowie jak w Banku” prevention programme, aimed at early detection of diseases and promotion of a healthy lifestyle.

Group insurance offering an option to participate in cost-effective group insurance; payments for this insurance are made by employees via the Bank.

MyBenefit cafeteria system – within the framework of this system, every employee has an opportunity to independently use the funds awarded from the Company’s Social Benefits Fund using an Internet platform. The platform offers a wide range of benefits to be selected by the employee. The amount allocated depends on the family per capita income.

Salary System

The average basic salary in the Group in 2017 was PLN 5,718 (excluding the salaries of the Management Boards of the Group’s entities). The average salary in the Bank in 2017 was PLN 6,040. The differentiation of the average salary by gender is discussed in Chapter 17.

Average remuneration in the Group, including the Bank, in PLN, by gender (31/12/2017)

GROUPincluding the BANK
Average basic salary (PLN)5,7186,040

Ratio of women’s salaries to men’s (%)


Note: 1) the data does not include the salaries of the members of the Management Board of the Group’s entities; 2) salaries in the Ukrainian companies are converted according to the National Bank of Poland rate of 29/12/2017.

Additional benefits

Regardless of the salary system, the Group guarantees its employees a wide range of additional non-salary benefits – in particular:


In addition to occupational medicine services, which the employer is obliged to provide by the provisions of the Labour Code, the Bank provides its employees additional medical care, to which the employees are entitled according to differentiated packages of benefits dedicated to specific groups of jobs. All employees have the opportunity to benefit from medical consultations with doctors of all specializations and a wide range of diagnostic examinations free of charge. The employees are also able to benefit from the prophylaxis programme called “Zdrowie jak w Banku” [Guaranteed health], which has the objective of the early detection of diseases and the promotion of a healthy lifestyle. Over 98% of employees benefit from additional non-statutory medical care at the Bank.

Other entities in the Group (operating in Poland) provide medical care to their employees on the terms negotiated with the healthcare provider by the Bank, based on separately concluded agreements.

97% of the employees in the Group have additional (non-statutory) medical care.

EPP – Employee pension programme

An Employee Pension Programme (EPP) has been operating at the Bank since July 2013. Under this programme, employees are able to enter into a long-term savings programme to supplement their pension income received
from the mandatory parts of the pension system. The Bank’s EPP is operated in the form of an agreement on the Bank contributing a Basic Contribution (3% of the salary) and the Additional Employee Contribution to Investment Funds managed by PKO TFI SA.

Employee Pension Programmes are also provided to the employees of the larger companies of the Group: PKO Życie Towarzystwo Ubezpieczeń SA, PKO Towarzystwo Ubezpieczeń SA, PKO BP Finat Sp. z o.o., PKO Leasing SA, PKO BP BANKOWY PTE SA and PKO TFI SA.


Employees are able to benefit from the MyBenefit cafeteria system from the funds from the Corporate Social Benefits Fund (CSBF), enabling the employees to independently use the funds allocated to them from the CSBF through an online platform. The level of funds received from the cafeteria depends on the gross income per person in a given family.


The practice at the Group’s entities is to provide employees with the ability to use sports cards.

Additional non-salary benefits available to the Group’s employees in 2017

GROUPNumber of usersshare of total employment (%)
additional insurance8272.9
medical packages28,07597.0
employee pension programme18,18562.9
cards authorizing the use of sports facilities4,72616.3
housing loans00.0

Additional non-salary benefits available to the Bank’s employees in 2017

BANKNumber of usersshare of total employment (%)
additional insurance00.0
medical packages24,22398.3
employee pension programme17,50871.0
cards authorizing the use of sports facilities3,87615.7
housing loans00.0

Concern for Polish art
history and tradition

No Title, 1997

Krzysztof Bednarski Sculpture, bronze
Dimensions: 166x28x27cm

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Sounds V, 1994

Jan Dobkowski Painting, acryl/canvas
Dimensions: 120x160cm

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No Title, 1997

Tomasz Ciecierski Painting, oil, collage/canvas
Dimensions: 171,5x244cm

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No Title, Fish 1992

Ryszard Grzyb Painting, oil/canvas
Dimensions: 140x80cm

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Under the hill, 1991

Łukasz Korolkiewicz Painting, oil/canvas
Dimensions: 136x200cm

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The roofs 1, 1990/91

Robert Maciejuk Painting, oil/canvas
Dimensions: 116x138cm

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Diary No. 87c, 1997

Włodzimierz Pawlak Painting, oil, pencil/canvas
Dimensions: 24x18cm

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Franz Kafka's letters to Felice Bauer, before 1998

Andrzej Szewczyk Sculpture, own technique, wood, lead
Dimensions: 40x17,5x4cm

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