Suryoday Small Finance Bank Limited
Annexure 22 - Notes forming part of the Restated Summary Statements
(All amounts are in Indian Rupees in million unless otherwise stated)

(d) Description of the ways in which the Bank seeks to link performance during a performance measurement period with levels of remuneration

Overview of main performance metrics for the Bank, top level business lines and individuals: The main performance metrics include profitability, business
growth, asset quality, compliance, and customer service.

Discussion of how amounts of individual remuneration are linked to the Bank-wide and individual performance: The assessment of employees shall be
based on their performance with respect to their result areas and shall include the metrics mentioned above.

 

 

Discussion of the measures the Bank will in general implement to adjust remuneration in the event that performance metrics are weak, including the
Bank’s criteria for determining ‘weak’ performance metrics: In case such an event should occur, the Board/NRC shall review and provide overall guidance
on the corrective measures to be taken,

(©) Description of the ways in which the Bank seeks to adjust remuneration to take account of the longer term performance

Discussion of the Bank’s policy on deferral and vesting of variable remuneration and, if the fraction of variable remuneration that is deferred differs
across employees or groups of employees, a description of the factors that determine the fraction and their relative importance: Under the new
Compensation Policy, the cash variable component will be deferred equally over S years and the non-cash variable component (employee stock options) will be
deferred over the vesting period as per the extant ESOP Scheme.

In case of other employees, where cash variable is not applicable and in case of employees being granted ESOPs, they will be deferred over the vesting period as

Discussion of the Bank’s policy and criteria for adjusting deferred remuneration before vesting and (if permitted by national law) after vesting through
claw back arrangements: In the case of employees covered under the Compensation Policy, all deferred variable compensation would be subjected to
malus/clawback arrangements as provided in the RBI guidelines and this would be administered by the NRC.

 

 

(0 Description of the different forms of variable remuneration that the Bank utilises and the rationale for using these different forms :

Overview of the forms of variable remuneration offered. A discussion of the use of different forms of variable remuneration and, if the mix of different
forms of variable remuneration differs across employees or group of employees, a description of the factors that determine the mix and their relative
importance: As per the new Compensation Policy, only the employees falling under the categories of Material Risk Takers (MRTs), Risk Control & Compliance
Staff (RCS) and Enabling & Supporting Functions Staff (ESS) are eligible for variable remuneration which could be in cash or non- cash forms. The Policy also
determines the category-wise mix of the variable compensation payable.

 

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