Board Human Resources and Remuneration Committee (the BHRRC) consists of following members whose profiles are given on pages 14 to 19.
Mr M P Jayawardena*
Regular attendees by invitation
Mr J Durairatnam
Retired on July 26, 2018
Participated in all deliberations, except those matters impacting his own terms and conditions of employment
Mr S Renganathan
Appointed w.e.f. July 30, 2018
Participated in all deliberations after his appointment except those matters impacting his own terms and conditions of employment
|Name||Eligible to attend/ Attended|
|Mr K G D D Dheerasinghe||05/05|
|Mr M P Jayawardena||05/05|
|Mr S Swarnajothi||05/04|
|Mr J Durairatnam||03/03|
|Mr S Renganathan||02/02|
The Committee held five (5) meetings during the year under review.
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 were regularly reported to the Board of Directors.
Considering the representations made by employee organisations and deliberations by the Management, a Defined Contributory Pension Scheme was recommended for the staff members who joined the Bank from the year 2000.
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.
Evaluate, assess, decide and recommend to the Board, matters that may affect the Human Resource Management of the Bank specifically;
During the year, the Committee interviewed, based on the succession plan, suitable candidates to fill the vacancies in the Corporate Management and such recommendations were accordingly approved by the Board of Directors. The changes that took place in the key management positions during the year, and the ability of the Bank to ensure a smooth transition in each of these cases, signify the importance of and the attention paid to the talent management process of the Bank. In all promotions to the Corporate Management grade, the Committee applied previously approved leadership competency framework to judge the suitability of the candidates.
Further, the Committee determined the bonus payable for 2017 performance according to the Variable Pay Plan 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 2017 including that of Managing Director and Chief Operating Officer were reviewed. At the conclusion of the review process for 2017, the key performance areas and the respective KPIs of the Corporate Management members for 2018 were carefully perused by the Committee and agreed on, subject to changes.
In view of the fresh Collective Agreement signed with the Ceylon Bank Employees’ Union (CBEU) for a period of three years with effect from January 2018, salary revisions were effected in the Bank for all executive grades. A salary survey was conducted for the positions of Managing Director/Chief Executive Officer and Chief Operating Officer through external consultants.
The pensions and the outdoor medical scheme for the retired staff members of the Bank, who are entitled to pension under the system which prevailed before year 2000, were also reviewed by the Committee on the recommendation of the Managing Director and the proposal was recommended for the approval of the Board.
The Committee also reviewed, the succession plan prepared by the Management for the Corporate Management positions.
Considering the representations made by employee organisations and deliberations by the Management, it was recommended that staff members who joined the Bank from the year 2000 are to be considered for a Defined Contributory Pension Scheme. The Committee considered the report made by representatives of NDBIB who analysed and recommended the proposal made by Management as an acceptable scheme. The Committee recommended the scheme for approval of the Board of Directors.
The Committee considered the recommendation of the Management for the recomposition of the HR Steering Committee where all Deputy General Manager grade members are to be included to the current composition. The Committee also reviewed the revised Terms of Reference of the HR Steering Committee and recommended same for the approval of the Board of Directors.
K G D D Dheerasinghe
Chairman – Board Human Resources and Remuneration Committee
February 22, 2019