Regulatory Alerts2022-04-10
Added · Updated
Board of Directors and Remuneration Policy at a Banking Corporation
This document amends Proper Conduct of Banking Business Directives No. 301 and 301A for banking corporations and credit card companies. It requires the board of directors to define the functions and authorities of the Board Chairperson to ensure independence from management and specify their time commitment. For banking corporations without a controlling core, it permits paying the Board Chairperson compensation appropriate to their role, exempting them from Section 244(a) of the Companies Law, and mandates that their remuneration be determined relative to the average remuneration of an expert director, with specific expense allowances. Existing chairpersons in banking corporations without a controlling core must have their remuneration determined within six months of the provisions' effective date, and chairpersons are prohibited from receiving additional payments beyond remuneration and expenses.