Need help to get started, get in touch
Make a complaint Search

Remuneration policy of the Business Banking Resolution Service (“BBRS”) 

Purpose

The purpose of BBRS’s Remuneration Policy is to attract, retain and motivate senior management of the quality required to run the BBRS successfully without paying more than is necessary and having regard to the views of members and other stakeholders.

Definitions

In this Policy:-

“Board members” means the Chair, Chief Executive Officer, Chief Adjudicator, Bank Experienced Director and the Independent Directors as defined in BBRS’s Articles of Association;

“senior executive means any individual who provides services to BBRS, who is not a Board member but who occupies a leadership role within BBRS, as determined from time to time by the Nomination and Remuneration Committee. 

Principles

This Policy will be implemented by reference to the following principles:-

  • To ensure that BBRS’s remuneration practices promote sound and effective risk management and do not encourage risk-taking which exceeds BBRS’S levels of tolerated risk
  • To support BBRS’s business strategy, objectives, values and long-term interests
  • To avoid conflicts of interest
  • To maintain the highest standards of governance
  • To minimise complexity and ensure transparency
  • To support inclusivity and promote diversity, having regard to the Equality Act 2010
  • To take into account predictability, proportionality and alignment with the culture of BBRS.

Remuneration of Board members

Board members are remunerated by receipt of an annual salary determined on the basis of the criteria set out in the BBRS’s Nomination, Appointment and Remuneration Policy for the Board of Directors of the BBRS.

Remuneration of senior executives

Senior executives are remunerated by receipt of a base salary and such other benefits as may be determined from time to time. The Chief Executive and Chief Adjudicator will make recommendations to the Nomination and Remuneration Committee with regard to the level of salary and benefits and terms of employment of senior executives [annually or as needed from time to time] for approval by the Committee. When considering and agreeing any proposals relating to remuneration, the Nomination and Remuneration Committee will take into account all relevant and necessary factors, including data and information supplied by third parties and comparative information (both internal and external.)

Remuneration generally

The Nomination and Remuneration Committee will consider and agree proposals from the Chief Executive and Chief Adjudicator regarding overall remuneration and structure within the BBRS and will make recommendations to be considered by the Board. It will offer views on proposals from the Chief Executive and Chief Adjudicator for major changes in any employee benefit structures.

Conflicts of interest

Board members are required to abide by the Directors’ Conflicts of Interest Policy of the BBRS. No Board member or senior executive is permitted to be involved in any decision on his or her remuneration, appointment or re-appointment.

Performance assessment

If so requested by the Board and in consultation with the Board of the BBRS, the Nomination and Remuneration Committee will recommend a process for a formal evaluation of the performance of the Board and Board members and express a view on whether such a process should be externally facilitated. Any such evaluation will include an evaluation of the Board’s diversity and how effectively Board members work together to achieve the BBRS’s objectives and strategic goals.

The Nomination and Remuneration Committee will provide support to the Chief Executive and Chief Adjudicator in reviewing the performance of senior executives. The Chair will assess the performance of the Chief Executive and Chief Adjudicator and report to the Nomination and Remuneration Committee. 

Terms of appointment of Board members 

Board members are appointed initially for fixed terms of three years each. Appointments are made in accordance with the Nomination, Appointment and Remuneration Policy for the Board of Directors of the BBRS. Terms of appointment of Board members may be the subject of review. 

Review of policy

This policy will be reviewed annually.