Citadele group’s remuneration policy

CBL Asset Management IPAS and Citadele banka are part of the Citadele Group, where Citadele banka AS is the parent company of the Group. CBL Asset Management follows the remuneration policy approved by the Group. The Citadele Group is committed to fair and reasonable remuneration practices and policies to promote the long-term sustainability and development of the business and to achieve the best interests of both Citadele Group and its employees. The remuneration policy includes, among other things, requirements to comply with the Code of Ethics of the Citadele Group, as well as norms to align employee behaviour with the interests of a wider range of the Citadele Group stakeholders.

The growth of assets under management is not the only or the main component of the Remuneration Policy, therefore the risk that individual motivations in making investment decisions may not be aligned with sustainability risk considerations is limited.

The Group's Remuneration Policy is aligned with the integration of sustainability risks and details of how sustainability risks considered are disclosed here.

Sustainability is an integral part of Citadele's remuneration policy, reflecting our commitment to sound risk management and ethical business practices.

The Group has prepared information on how remuneration policy is consistent with the integration of sustainability risks, which discloses information on:

  • integration of sustainability risks and information on how sustainability risks are considered in the remuneration policy;
  • linking executive and employee remuneration to the achievement of sustainability objectives and long-term value creation;
  • specific sustainability performance indicators on sustainability factors;
  • sustainability outcomes to be achieved.

The priority sustainability objectives are linked to our business and sustainability strategy for the next three years and cover the areas where we have the greatest impact. Information on the Group’s and CBL Asset Management Sustainability Strategy is available here.

The Group's remuneration policy sets out qualitative and quantitative indicators to check the degree of achievement of objectives based on employee performance. The Group defines the indicators for process-oriented objectives as: time spent on customer service, paperwork; support to customers with green transition; indicators related to regulatory compliance, i.e. indicators related to compliance with regulations and restrictions that are binding on employees and that may affect the risk profile and financial performance of the Group/CBL Asset Management, including sustainability risk. The performance targets set for employees performing internal control functions (risk control, compliance and internal audit functions) are designed to ensure that they are remunerated independently of the performance of the business areas they control.

To further limit excessive risk-taking and reduce the focus on short-term objectives, for job groups that affect the risk profile of the business and portfolios, part of the variable remuneration is deferred for a period of one to three years.  Citadele Group follows developments closely and regularly introduces best practices and innovations in sustainable finance and environmental, social and governance (ESG) aspects into the Remuneration Policy. For more details on the Remuneration Policy, including its objectives, elements of the remuneration structure, principles for determining fixed and variable remuneration, sustainability risk management and the long-term incentive plan, see the Group's remuneration reports under Remuneration Report.

Remuneration Policy