Mizuho Bank Europe Annual Report 2018

27 2018 ANNUAL REPORT growth. We value and include our employees and see them as an important partner in driving the success of our company. Our Vision on Remuneration As a Dutch licensed bank we comply with the Dutch Banking Code to determine our approach to remuneration. Our remuneration policy consists of a variety of topics such as awarding performance, retention, and termination packages. In addition, we also include topics for the composition of the variable remuneration and the performance criteria used to determine variable remuneration. As a Japanese bank our company culture and strategy embed steady, sustainable and consistent growth. This aspect, combined with a performance management approach based on our customers’ interests, defines our variable remuneration policy. We believe that a remuneration policy should avoid a negative impact on the risk appetite and our long-term business continuity. We also believe in a balanced approach between financial and non-financial objectives impacting our remuneration decisions. Collective Labor Agreement, Banks As a Dutch licensed bank, Mizuho Bank Europe N.V. follows the Collective Labor Agreement (CLA) Banks. The current CLA expires per 1 January 2019. A new 2-year CLA has been agreed with the unions running till 1 January 2021 including a structural salary increase of 2.5% for both 2019 and 2020. The banking sector is changing rapidly as a result of new technologies and the emergence of new players. This calls for employees who demonstrate vitality and agility and take the initiative to develop their talents. Banks will provide a culture of inclusion and balance between permanent and flexible staff. The newest CLA agreements are based on an energetic working environment and mature employment relationships that fully reflect the diversity in the banking sector. Financial Remuneration We believe that a fair and balanced remuneration package is a vital element for a sustainable corporate culture and a productive organization. For us, a balanced remuneration is in line with the market value of our employees and reflects their performance and as well as their responsibilities. We strive for transparency and objectivity around our (variable) remuneration, employee job descriptions, potential career growth opportunities and promotions. Clear individual objectives, company results, and a pro-active employee attitude define the key-elements within our appraisal process. In this way financial awarding is linked to the impact our professionals have on our company’s continuity and sustainable growth. For our Management Board members we have a separate remuneration approach, as their performance is mostly related to the overall office rating, which is determined by Mizuho Bank in Tokyo. This office rating is not only related to the financial performance, but also internal control, operational, expense control, strategic deliverables and risk avoiding performance across the year. The external members and advisors of the Supervisory Board receive a fixed fee. This fee is benchmarked and not related to our company’s performance or results and is agreed upon in advance. Non-financial Remuneration We are convinced that being an attractive employer in the current market goes beyond the financial aspect of remuneration. We invest in developing the social environment, such as employee training, sports activities, culture prize awards, corporate social responsibility events and social employee events. We significantly increased our support for our