Afghanistan Commercial Bank believes that to accomplish its long-term objectives it must have a robust mix of experienced, highly-educated, and motivated employees. As a result, we hire bright, hard-working and talented Afghan men and women who have a passion for excellence and are committed to the highest ethical standards. We believe in developing our people from within. We offer clearly defined career paths, mentoring, training opportunities, and the chance to build long-term careers. We expect our employees to be engaged problem-solvers, rigorous thinkers, and exemplary citizens within the Bank and their communities.
We have five key objectives for compensation:
Core remuneration principles include the following.
As part of the Compensation Strategy, the Bank employs a Total Compensation philosophy, which comprises Fixed Pay and Variable Compensation.
Fixed pay is used to compensate employees for their skills, experience and competencies, commensurate with the requirements, size and scope of their role. For the majority of the Bank employees, fixed pay is the primary compensation component, and the share of fixed compensation within Total Compensation is far greater than 50%. This is appropriate to many businesses and will continue to be a significant feature of Total Compensation going forward.
Variable compensation is based on the industry objective of retaining cost flexibility while attracting and retaining the right talent. Variable compensation also has the advantage of being able to differentiate performance outcomes and drive behaviors through appropriate incentive systems that can also positively influence culture. As a result, variable compensation is a key feature of market practice compensation in many business lines in the banking environment globally. Combined with fixed pay, this drives Total Compensation outcomes that are cost effective, flexible and aligned to performance.
The Bank also grants or in the future will grant benefits including company pension schemes and health insurance that are linked to employment with the Bank, to certain seniority or to certain length of service but that have no direct link to performance.
Approved by the Board of Supervisors on 12/11/2016