Remuneration Report of
Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt.
for the Financial Year 2022
Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. 1033 Budapest, Polgár u. 8-10.
Tel. (36 1) 457 3860 | Fax. (36 1) 367 2800 | E-mail: info@bif.hu
Remuneration Report of
Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. for the Financial Year 20221
Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. (hereinafter: "Company or "BIF") has prepared this
remuneration report2 of the Company for the financial year 2022 (hereinafter: "Report") based on the provisions of Act LXVII of 2019 on the Promotion of Long-term Shareholder Involvement and the Amendment of Certain Acts for the Purposes of Legal Harmonisation ("Act") and the remuneration policy3 approved by the General Meeting of the Company for an opinion (hereinafter: "Remuneration Policy").
The purpose of the Report is to provide a comprehensive overview of all remuneration awarded or payable in the last financial year to the individual directors, including newly appointed directors, in accordance with the Remuneration Policy.
Directors of the Company in the financial year 2022 | ||
Name | Position | |
Dr Anna Ungár | President of the Board of Directors and CEO since May 4, 2022 | |
Kristóf Berecz | Vice President of the Board of Directors, CEO | |
Dr Frigyes Hárshegyi | Member of the Board of Directors and President of the Audit Committee | |
Julian Tzvetkov | Member of the Board of Directors and of the Audit Committee | |
Miklós Vaszily | Member of the Board of Directors and of the Audit Committee | |
Róbert Hrabovszki | Deputy CEO, CFO |
1. Remuneration of the Board of Directors and of the Audit Committee in 2022
In 2022, the members of the Board of Directors and the Audit Committee were remunerated in accordance with Section II.1 of the Remuneration Policy.
In the 2022 financial year, like in the previous year, the members of the Board of Directors performed their duties in this capacity without remuneration, while the members of the Audit Committee received a gross remuneration of HUF 300,000 per month per member.
The members of the Board of Directors and of the Audit Committee did not receive any performance- related remuneration in this capacity in 2022.
Disbursements/remuneration for the financial year 2022
Fixed | Fringe | Variable | Total | |||
(performance- | Ratio of fixed | Ratio of | ||||
remuneration | benefits | remuneration* | ||||
Name | (annual fee, | (cafeteria) | related) | (annual, gross, | remuneration | variable |
gross, HUF) | HUF/year | remuneration | HUF) (4) = | (%) | remuneration | |
(annual, gross, | ((1)+(2))/(4) | (%) (3)/(4) | ||||
(1) | (2) | (1)+(2)+(3) | ||||
HUF) (3) | ||||||
Dr Anna Ungár | 0 | 0 | 0 | 0 | - | - |
Kristóf Berecz | 0 | 0 | 0 | 0 | - | - |
Dr Frigyes Hárshegyi | 3,600,000 | 0 | 0 | 3,600,000 | 100% | 0% |
Julian Tzvetkov | 3,600,000 | 0 | 0 | 3,600,000 | 100% | 0% |
Miklós Vaszily | 3,600,000 | 0 | 0 | 3,600,000 | 100% | 0% |
*Total remuneration is equal to all remuneration received from companies belonging to the BIF Group.
- Capitalised terms not specifically defined in this Remuneration Report are defined in the Remuneration Policy.
- The Company prepares a remuneration report annually. The first remuneration report has been compiled in 2022 for the financial year 2021.
- The Remuneration Policy approved by the Board of Directors to express its advisory opinion by Resolution No. 16/2020.04.29. within the competence of the General Meeting of the Shareholders, which is a consolidated version of Resolution No. 33/2022.04.29 of the General Meeting of Shareholders, including Amendment No. 2, and approved by the General Meeting of Shareholders as its advisory opinion.
1
Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. 1033 Budapest, Polgár u. 8-10.
Tel. (36 1) 457 3860 | Fax. (36 1) 367 2800 | E-mail: info@bif.hu
2. Remuneration of Senior Managers in 2022
For the financial year 2022, the remuneration of the Senior Managers was determined in accordance with the provisions of Section II.2 of the Remuneration Policy, in line with the Company's strategic objectives, to support their achievement, taking into account the Company's risk tolerance and in order to achieve the fullest possible alignment with the shareholders' interests.
2.1. Annual basic salary and related benefits
For the financial year 2022, the annual basic salary and the related benefits were consistent with the provisions of Section II.2.1 of the Remuneration Policy.
2.2. Short-term incentive (bonus)
The Short-term incentive scheme is designed to encourage managers to endeavour to achieve the corporate and individual targets that support the Company's strategic objectives and are achievable within a year.
In accordance with the Remuneration Policy, the individual bonus packages of the Senior Managers were adopted for the financial year 2022, and the specific targets for the financial performance indicators and the non-financial performance indicators (individual targets and expectations) were defined in accordance with Section II.2.2.1 of the Remuneration Policy.
-
Performance weights to be used in the assessment:
o for the CEOs, the weight of financial performance indicators is 75%, while the individual targets and expectations weigh 25%;
o for the Deputy CEO, CFO, the financial performance indicators is 60% and the individual targets and expectations weigh 40%. - The bonus may be up to 100% of the annual base salary of the CEOs, and up to 80% of the annual base salary of the Deputy CEO, CFO, provided that the Board of Directors decides to pay a Bonus upon the recommendation of the Audit Committee. The specific amount of the payable Bonus will be determined on the basis of the performance assessment of the beneficiaries.
On the basis of Section II. 2.2.2. of the Remuneration Policy, the Board of Directors, on the recommendation of the Audit Committee, decided to pay a bonus in December 2022, depending on the preliminary annual business results.
In its Annual Evaluation, the Audit Committee assesses the performance of the Senior Managers concerned on the basis of a combination of financial and non-financial performance indicators set out in the Bonus Allocation and proposes the level of the bonus to be paid to the Senior Managers, which is then approved by the Board of Directors. The Annual Evaluation and the relevant decision of the Board of Directors will be made within 30 days after the annual General Meeting of Shareholders (hereinafter: "AGM") closing the financial year 2022. Subject to the approval of the Board of Directors, the Company shall ensure payment of the approved bonuses no later than 45 days after the AGM, taking into account the interim bonuses paid.
The Short-term incentive scheme is designed in such a way that the "reclaiming" of the Bonus is not applicable under the Remuneration Policy.
2
Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. 1033 Budapest, Polgár u. 8-10.
Tel. (36 1) 457 3860 | Fax. (36 1) 367 2800 | E-mail: info@bif.hu
Disbursements/remuneration for the financial year 2022
Fixed | Fringe | Variable | Total | |||
benefits | (performance- | Ratio of fixed | Ratio of | |||
remuneration | remuneration* | |||||
(cafeteria) | related) | remuneration | variable | |||
Name | (annual basic | (annual, gross, | ||||
HUF/year | remuneration | (%) | remuneration | |||
salary, gross, | HUF) (4) = | |||||
(2) | (interim bonus, | ((1)+(2))/(4) | (%) (3)/(4) | |||
HUF) (1) | (1)+(2)+(3) | |||||
gross, HUF) (3) | ||||||
Dr. Ungár Anna | 15,818,182 | 0 | 6,327,273 | 22,145,455 | 71% | 29% |
Kristóf Berecz | 24,000,000 | 0 | 9,600,000 | 33,600,000 | 71% | 29% |
Róbert Hrabovszki | 18,600,000 | 450,000 | 5,952,000 | 25,002,000 | 76% | 24% |
*Total remuneration is equal to all remuneration received from companies belonging to the BIF Group.
2.3. Long-term incentive
The Long-term incentive for Senior Managers is based on the provision of shares at a discounted price. The purpose of this incentive is to maintain the long-term share price growth ambition of Senior Managers, thereby aligning senior management objectives with long-term shareholder interests.
2.3.1. Terms and conditions of Share Allocation
The application of the Long-term incentive scheme for the financial year 2022, as set out in Section II.2.3 of the Remuneration Policy, is decided by the Board of Directors, based on the evaluation of the exchange rate changes, in connection with the Annual Evaluation, on the proposal of the Audit Committee, at the latest within 30 days after the AGM. Exchange rate changes are assessed on the basis of public data accessible on the website of the Budapest Stock Exchange. The Company provides shares at a discounted price from its current treasury stock.
2.3.2. Settlement rules
- In the course of a Share Allocation approved, the number of shares offered for purchase at a discounted price in a sale and purchase transaction, whether on the stock exchange or OTC, within 45 days of approval, for the CEOs and the Deputy CEO, CFO is RCEO and RDCEO, respectively. The number of shares (RCEO and RDCEO) included in the Share Allocation is calculated as 50% of the annual gross base salary of the beneficiaries divided by the closing price of the Shares on the stock exchange trading day preceding the value date of the Transaction, and the Company is responsible for calculating the value of the RCEO and RDCEO.
- The Discounted Price is 70% of the average stock exchange price of the Shares in the 180 days preceding the value date of the Transaction. The Company is responsible for the calculation of the average price.
- The Senior Managers may not sell the Shares acquired in the Transaction for a period of 3 years after the Transaction value date, however, the dividends paid by the Company may be freely disposed of during the Retention Period. After the expiry of the Retention Period, the Senior Managers may freely dispose of the acquired Shares.
- If during the Retention Period the employment of the Senior Manager is terminated (whether at the initiative of the Senior Manager or of the Company), the Company is entitled to repurchase the Shares under the Share Allocation at a Discounted Price through a stock exchange or an OTC transaction. In the event that the Company exercises the above-described repurchase right, the Senior Manager is under an obligation to sell the Shares included in the Share Allocation.
No resolution was made by the Board of Directors regarding the application of a Share Allocation for the 2021 financial year.
3
Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. 1033 Budapest, Polgár u. 8-10.
Tel. (36 1) 457 3860 | Fax. (36 1) 367 2800 | E-mail: info@bif.hu
3. Changes in the remuneration compared to the previous year
Average annual | |||||
Average total | remuneration of | ||||
annual | non-executive | ||||
Adjusted group | Adjusted group | Average total | remuneration of | employees | |
EBITDA (IFRS | EBITDA (IFRS )* | annual | Senior Managers | (gross)*** | |
audited | changes | remuneration of | (gross)** changes | changes | |
business | consolidated, th | compared to the | Senior Managers | compared to the | compared to the |
year | HUF)* | previous year | (gross, th HUF)** | previous year | previous year |
2021 | 2,666,418 | - | 40,965 | - | - |
2022** | 7,846,847 | 294.28% | 30,322 | 74.02% | 109.28% |
*Value adjusted for the effect of the fair valuation of investment properties; the 2022 value is calculated on the basis of the consolidated annual financial statements presented to the 2023 Annual Shareholders' Meeting
**In 2021, the Company had two, whereas from 4 May 2022 the company has had three Senior Managers. The 2021 figure includes approved total bonuses, while the 2022 figure includes approved bonus advances.
- The average annual statistical headcount (non-executive) was 46 in 2021 and 49 in 2022; including Cafeteria
4. Additional information
The Remuneration Policy for the financial year 2022 was implemented in full compliance with its provisions, with no deviations.
The Company's first remuneration report for the financial year 2021 was approved by the General Meeting of Shareholders by resolution 32/2022.04.29 for advisory purposes. The Shareholders Meeting did not make any comments. Therefore, the resolution of the Shareholders Meeting for advisory purposes on the remuneration report for the previous financial year could not be taken into account for the present remuneration report.
Budapest, 6 April 2023
Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt.
Board of Directors
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Budapesti Ingatlan Hasznosítási és Fejlesztési Nyrt. published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 10:37:29 UTC.