The PZU Group’s remuneration and benefits system provides employees with equal treatment in shaping remuneration, guided by employees’ individual potential, achievements and performance.
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The basis for determining an employee’s base salary is the evaluation of the job in question, the competences held by the employee and, in respect of variable components of employee compensation, his or her performance appraisal.
Risk of overrunning the personnel budget, i.e. risk related to the need to hire an employee for an amount higher than budgeted in connection with lack of qualified employees in the labor market. Unbudgeted employee hiring.
In order to mitigate this risk, the PZU Group has implemented a financial planning procedure in the PZU Group. As part of this procedure, reserve financing to fund this type of hiring is used, or, as a last resort, the central budget reserve is used. Due to its limited size, there is a risk of overrunning the budget.
Financial Planning Procedure in the PZU Group, Remuneration policy of PZU SA and PZU Życie.
Remuneration policy
PZU Group companies have in force rules and regulations pertaining to bonuses and bonuses and commissions. The high quality of the work done by people employed in the Group is therefore additionally rewarded.
In 2016, PZU and PZU Życie adopted “Compensation Policies” which are subjected to annual reviews and, if needed, updated accordingly. Above all, the purpose of this document is to ensure that our employee compensation systems are in line with the company’s risk profile, that we achieve our intended business result and that we attain our business objectives within the framework of the risk limits prescribed by the Management Boards. It is also important to motivate employees to enhance their work efficiency constantly and ramp up their commitment while simultaneously linking their pay to the performance of the companies, organizational cells or units in which they are employed.
In the PZU Group entities, employee compensation policies or rules and regulations have been implemented in order to lay down the guidelines and principles for calculating the value of employee remuneration in a manner consistent with the strategy of the respective entity, conducive to the attainment of goals and boosting the Group’s competitiveness on the labor market.
The adopted policies and documents provide equal opportunities to employees for development, improvement of skills and promotions. The remuneration system depends on the type of the work performed, the value of the position for the company, the employees’ competences, required skills, job appraisal and market remuneration levels. The company prevents discretion as regards remuneration, among others through setting transparent, non-discriminatory fixed compensation levels for the same type of work or work with the same value, reflecting primarily appropriate professional experience and organizational responsibility defined in the job description.
Best practices of PZU and PZU Życie
Total Rewards Statement (TRS)
Employees of PZU and PZU Życie and selected other PZU Group entities receive a personalized Total Rewards Statement (TRS) at the beginning of each year. It presents their total remuneration for the previous calendar year. The individual statement presents all financial rewards received from the employer, including non-salary benefits used. The statement additionally contains information on other available benefits and forms of support from the employer.
Best practices of subsidiaries
CASH – by the end of 2022, a total of more than 800,000 persons could use the Cash portal
Cash is an innovative employee financial benefit platform created by PZU and Alior Bank. Employees of the companies collaborating with PZU Cash may quickly obtain attractive financial products – including a low-interest loan for any purpose, a mini loan that acts as an early payment of regular employee compensation, or a consolidation loan. The process of applying for a loan is fully remote. The term of the loan is between 3 and 36 months and the maximum loan amount is PLN 50 thousand. Employees do not have to remember about the repayment date, because the installments are deducted automatically from their remuneration, which is a convenient solution. The Cash portal combines the needs of both employees and employers while bringing mutual benefits. Employees can easily obtain extra cash from a safe source with no hidden costs or additional conditions. Employers, in turn, can offer additional financial benefits to employees.
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Performance assessment
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ESG targets comprise tasks connected with implementation of ESG strategy performance indicators; they relate to key projects and are directed to selected organisational units responsible for the implementation of strategic activities. By assigning ESG targets, units which are not directly involved in strategic actions were included by PZU in the idea of sustainable development. The degree of attainment of these goals translates into the value of variable compensation to be received by these directors. Linking ESG targets to the remuneration of the management staff is a confirmation of the importance of sustainability in daily business practice. In 2022, PZU and PZU Życie implemented 30 targets which take into account ESG factors.
Gender Pay Gap
The value of the Gender Pay Gap ratio, showing the difference between salaries received by men and women, is a confirmation of equal treatment and the absence of discrimination based on gender.
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| Average base salary ratio of women to men* | PZU and PZU Życie | PZU | PZU Życie | PZU and PZU Życie | PZU | PZU Życie |
|---|---|---|---|---|---|---|
| Senior management | 99% | 97% | 99% | 98% | 96% | 98% |
| Managerial positions | 96% | 96% | 97% | 97% | 97% | 98% |
| Expert positions | 95% | 96% | 94% | 97% | 97% | 95% |
| Specialist positions | 96% | 96% | 95% | 96% | 95% | 95% |
| All employees | 96% | 96% | 96% | 96% | 96% | 96% |
| GPG (CEO) – the ratio of annual total remuneration for the highest-paid person to the median annual total remuneration of all employees (excluding the highest-paid person) in 2022 was 13.7% (PZU and PZU Życie) | ||||||
Benefits
PZU Group employees are covered by collective agreements, including the Company Pension Agreements. Employee Capital Schemes have been implemented in entities where there was previously no Employee Pension Schemes to provide additional retirement security.
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PZU and PZU Życie offer their employees a broad range of fringe benefits tailored to their diverse needs.
The main benefits include:
- Employee Pension Scheme – a pooled investment program the purpose of which is to collect additional funds for the employees’ future retirement benefits; the employer’s contribution is equal to 7% of the employee’s salary,
- benefits from the Company Social Benefit Fund, which employees may adjust in accordance with their specific needs, include, in particular: co-funding of employee vacation options, holiday grants, financial assistance (for instance, in the form of renovation and modernization loans, non-returnable allowances) and a cafeteria system in which the funds granted may be spent on the purchase of various cultural, tourist or sports events or services,
- health benefits – comprehensive private medical care services provided by PZU Zdrowie which may also be provided to relatives and parents, insurance for medicine and supplement of up to 100% of employee compensation in the case of special sickness absences (e.g. due to cancer),
- group life insurance on preferential terms,
- special discount for employees on selected products offered by PZU,
- access to the PZU Cash platform,
- promotional terms for employees signing up for an individual pension security account offered under the PZU Voluntary Pension Fund – exemption from fees that are normally charged on contributions for a period of 5 years from the date of enrollment,
- management package for senior management,
- support for activities pursued by employees outside their workplace, including by providing opportunities to participate in the sports activities of the PZU Sport Team and in employee volunteering initiatives, for which staff members may receive additional 2 days off.
Remuneration policy – banks
In Alior Bank, the remuneration area is regulated by the Remuneration policy. The basic principles of the remuneration system are transparency and internal consistency in the process of determining remuneration, which takes into account the adopted strategy and the Bank’s business environment, as well as the applied market practice in entities engaged in banking activities. In this regard, the Bank acts in compliance with the rules under the Labor Code regarding equal treatment in employment, the right to select and evaluate employees. Through the use of appropriate remuneration mechanisms, the Bank creates a work environment that embraces all forms of diversity and supports individual potential. The remuneration system is a factor in building and protecting the Bank’s reputation and creating sustainable value for all stakeholders. The overarching objectives of Alior Bank’s remuneration policy revolve around promoting sound and effective risk management and discouraging risk-taking in excess of acceptable risk levels at the Bank in order to maintain a sound capital base and with the long-term interests of the Bank, its shareholders and clients in mind. The policy supports the implementation of the Bank’s strategy for sustainable development, in terms of risk management policies, mitigation of conflicts of interest. It pursues the goal of maintaining a transparent relationship between individual performance and individual remuneration, by focusing on goals linked to accountability and real impact, and ensuring that the Bank’s employees act in the best interests of their clients, including providing them with clear and transparent information regarding the services and products offered by the Bank.
Bank Pekao has adopted the Remuneration policy which reflects the mission and values of Bank Pekao’s approach to employee remuneration systems. In particular, it defines the rules governing the fundamental issues related to remuneration, structure management, corporate and organizational processes; confirms the requirements for compliance of the adopted employee compensation systems with generally applicable laws; defines the principles of monitoring market practices and the approach to the issue of employee compensation systems focused on ensuring the sustainability of the Bank’s operations.