A company of LBBW
Assigning responsibilities clearly, ensuring transparency with regard to policies and decision-making processes, designing methods and processes to be understandable, and ensuring efficient management, control and monitoring: These are the fundamental principles of good corporate governance at Berlin Hyp.
They make it clear that the Bank seeks to act as a responsible and transparent enterprise that focuses on long-term value creation. Governance guidelines for German companies are defined in the German Corporate Governance Code (DCGK).
Berlin Hyp follows the principles of the DCGK concerning the principles of good corporate governance and reports annually in the Annual Report on its corporate governance and its ongoing development.
The Berlin Hyp website provides information about all material developments and events related to the Bank. All annual reports and interim reports, other relevant information for the capital market and the latest sustainability reports and past sustainability reports are available on the website as well.
In accordance with the provisions of the DCGK, Berlin Hyp’s annual reports also transparently disclose information on the system of remuneration for the Board of Management and Supervisory Board (to be found in the Management Report), as well as information on remuneration for individual Board of Management and Supervisory Board members (in the Notes).
The collective agreements concluded for the private banking industry are applied at Berlin Hyp, although in accordance with a value assessment procedure, some of the Bank’s employees are paid salaries above those set in the agreements. The remuneration system for staff members not employed under the collective agreements corresponds in all respects to the legal and regulatory requirements that have been defined for such systems. Berlin Hyp’s remuneration system does not utilise incentives that intentionally influence the consideration of sustainability-related risks in the decisions made by employees in either a positive or negative way, nor does it use incentives that would cause employees to take risks (including sustainability-related risks). In connection with variable remuneration for employees, the achievement of the Bank’s sustainability targets is rewarded through its incorporation into remuneration decisions within the framework of qualitative evaluations of overall performance and success. This particularly applies in individual cases in which Berlin Hyp offers investment advice on financial instruments, and it also applies in connection with the organisation of the Bank’s business operations.
Because responsibility can also mean liability, members of the Board of Management and Supervisory Board are covered by D&O liability insurance with a reasonable deductible that amounts to at least ten per cent of the claim in question, up to a maximum amount of one and a half times the fixed annual remuneration.
More information on corporate governance at Berlin Hyp can be found here.
Annual reports and sustainability reports provide information on the latest developments. The annual reports also contain information on the system of remuneration for the Board of Management and Supervisory Board, as well as remuneration amounts.