43. Remuneration – PKO Bank Polski SA key management

a) short-term employee benefits

Remuneration received from PKO Bank Polski SA

Remuneration received from related companies (other than the State Treasury and entities related to the State Treasury)

Short-term employee benefits are employee benefits, which fall due fully within 12 months after the end of the reporting period in which the employees render the related service. As described in Note 44 ‘The principles for determining the variable salary components policy for persons holding managerial position in the Group’ as from 2012 the variable salary component for Group’s key management, including the Management Board, is granted in:

• not deferred form (in the first year after the calendar year constituting a period of assessment),
• deferred form (for the next three years after the first year of the assessment period).

Accordingly, the remuneration for 2013 includes the part of the variable salary component, which was paid out in July 2013.

b) other long-term benefits (in terms of variable salary components)

In the year ended 31 December 2013 and 31 December 2012 no other long-term benefits were paid. Remuneration presented below include deferred salary component paid in cash in accordance with the principles described in Note 44.

c)  share-based payments settled in cash (in terms of variable salary components)

In the year ended 31 December 2013 and 31 December 2012 respectively, no share-based payments which are settled in cash were paid.

Above mentioned remuneration include deferred salary component granted in the form of the financial instrument, i.e. the phantom shares (for which conversion into cash is carried out after an additional period of retention) in accordance with the rules described in Note 44. Payment of phantom shares (due part) was made in January 2014.

d) post-employment benefits

In the year ended 31 December 2013 and 31 December 2012 no post-employment benefits were paid

e) benefits due to termination of employment

In the year ended 31 December 2013 no benefits due to termination of employment were paid, and in the year ended 31 December 2012 respectively benefits paid due to termination of employment amounted to PLN 1 760 thousand.

f) Loans, advances, guarantees and other advances provided by the Bank to the management

Interest conditions and repayment periods differ neither from arm’s length nor from repayment periods set up for similar bank products.

Remuneration received by members of the Management Boards and the Supervisory Boards of the PKO Bank Polski SA Group subsidiaries