• Profile
  • TSKB in Brief
  • TSKB's Subsidiaries
  • Products and Services Of TSKB
• Performance
  • Value Creation
  • Awards & Recognitions
  • CEO's Assessment
• Approach
  • TSKB's Sustainable Banking Strategy
  • TSKB's Sustainability Priorities
• Dialogue
  • TSKB and Stakeholder Engagement
  • TSKB's Stakeholders
  • 2010 Stakeholder Dialogue Highlights
• Sustainability and Environmental Issues
  • Sustainable Banking at TSKB
  • Sustainable Banking Performance: the Economic Dimension
  • The Renewable Energy Sector and TSKB
  • TSKB Energy Index
  • TSKB, Climate Change, and the Environment
  • TSKB's Efforts on Behalf of Sustainability and the Environment
  • Who Wouldn't Want to Be Sustainable?
  • ISO 14001 Certification
  • The Structure of the TSKB Environmental Management Team
  • TSKB's Environment Policy
  • TSKB's Environmental Impact
  • Sustainable Banking Performance: the Environmental Dimension
  • Developments in External Environmental Impact
• Corporate Governance
  • Absolute Compliance With Laws and Regulations
  • TSKB's Corporate Governance Structure
  • Compliance With Corporate Governance Principles
  • Risk Management at TSKB
  • Prevention of Money-Laundering and the Financing of Terrorism
  • Relations with Suppliers
• People
  • Human Resources and the Workplace at TSKB
  • The TSKB Performance Management System
  • TSKB Compensation and Reward System
  • TSKB Human Resources Structure
  • Human Rights and Employee Rights at TSKB
  • Competency Development and Training
  • Health and Safety at TSKB
  • Commuting By Sea
  • Internal Communication at TSKB
• The Community
  • Social Responsibility at TSKB
  • "Environment: Our Priority": Past and present
  • The NGOs that TSKB Collaborates with
• Summarized TSKB Goals and Performance
• Appendices
  • About This Report
  • Statement GRI Application Level Check
  • Global Reporting Initiative Cross Index
  • Online Sustainability
  • Imprint
  • Communication and Service Channels

TSKB determines and supports the total benefits that it provides its employees by means of a compensation and reward system which has been formulated in light of policies aimed at motivating the Bank’s human resources.

TSKB COMPENSATION AND REWARD SYSTEM

TSKB determines and supports the total benefits that it provides its employees by means of a compensation and reward system which has been formulated in light of policies aimed at motivating the Bank’s human resources. At the same time, the Bank also gives attention to abiding by a compensation policy which is both competitive and market-sensitive.

The results of regular market surveys conducted by specialists in the field are taken into consideration in the conduct of these policies.

When salary raises are to be made, attention is given to the following issues:

• Employee performance
• An employee’s self-improvement efforts
• Sectoral averages
• Inflation rates.

TSKB’s compensation package consists of twelve monthly salaries, annual bonuses equal to four monthly salaries, and the Employees’ Share of the Bank’s profits. Employees who demonstrate superior success (based on the results of the Bank’s Performance Management System) are also paid performance-linked incentives. During the reporting period, all TSKB personnel who were employed in banking services were subjected to the Bank’s performance evaluation and career progression processes.

When recruiting and hiring personnel and whenever determining compensation throughout the ensuing employer-employee relationship, TSKB makes its decisions entirely on the basis of:

• Comparable job positions and accountabilities
• Departmental balances
• The results of periodically-conducted performance evaluations.

Because TSKB abstains from any approach that takes gender into account with respect to compensation levels, the ratio of men’s and women’s salaries to one another is of no importance whatsoever when determining or implementing compensation policy.

As members of the TSKB Supplemental Social Security Foundation, TSKB personnel qualify for a second pension in addition to their statutorily mandated entitlements. They also receive medical care from private hospitals with which the Bank has entered into agreements.

Contribution to benefit plans
Total payments made by TSKB as the employer’s and employees’ contributions to the Social Security Corporation (mandatory) and to the TSKB Supplemental Social Security Foundation (voluntary) are shown in the charts below. As these charts indicate, the deduction rate for the employee’s shares that are paid to the Social Security Corporation is 14%. Another 1% deduction is also made as an unemployment insurance premium. Both of these deductions are in compliance with statutorily prescribed limits. The employer contributes a 19.5% social security share and also pays a 2% unemployment insurance premium. In the case of the voluntary payments made to the TSKB Supplemental Social Security Foundation, the employee’s contribution rate varies between 9% and 11% of gross while the employer’s share is always 12%.

TL	2009 - 2nd half	2010
Employee and employer social security contributions	4,240,928.04	9,826,897.59
Payments to unemployment insurance	203,171.95	477,744.69

Executive compensation
TSKB determines executive compensation in light of both market considerations and individual performance. Every year, each component of its executive compensation package is decided upon taking into account currently-assessed market averages and the executive compensation policies of other banks and financial intermediaries comparable to TSKB in scope and scale. For the specific compensation of the members of the Bank’s senior management, use is made of market survey data and analyses provided by an independent consultancy.

TSKB’s compensation policy is structured so as to motivate managers to engage in activities that will contribute increasingly more to the Bank’s long-term performance and to achieve good results on an annual basis. TSKB gives great importance to performance-based compensation. The Bank’s performance-based compensation policy is designed to give management personnel an opportunity to earn more than just the average.

As management personnel rise in the organization and incur greater responsibilities, their performance-based compensation also increases. In addition, the more an executive’s role and responsibilities in corporate performance increases, the more his expectations with respect to compensation fall into line with shareholders’ expectations of receiving dividends.