Capital Requirements Directive V (“CRD V") is an EU legislative package covering banks, building societies and investment firms. It requires firms to hold adequate capital resources and provided a basis for new liquidity and leverage requirements. The Annual Report & Accounts together with our Pillar 3 Disclosures provide more information on the impact of these requirements.

Certain other governance matters must be disclosed under CRD V.

The Society’s diversity target, policy and implementation

The Society is dedicated to increasing diversity on its Board and set its ambition to achieve gender balance on the Board by 2024. The Society has also aligned to the UN Sustainable Development Goals and Women in Finance Charter - with an ambition for 40% of roles to held by women by 2025.

To fulfil these ambitions, the Society undertakes a wide variety of actions; including internships, apprenticeships and graduate programmes, internal development programmes that enable more diverse talent pools from within the Society for senior positions, as well as mentoring and sponsorship. The Society also partners with external recruitment specialists who bring experience and a track record of diverse placements. Whenever a Board vacancy arises, diversity is an important factor in any recruitment activity.

Relationship between fixed and variable pay

Article 92(2)(g) deals with the policy relating to the relationship between fixed and variable pay. The Society’s variable pay awards in respect of the financial year are currently a maximum of 80% of base salary, which is within the former remuneration cap set in CRD V. This cap was lifted from 31 October 2023 but the Society has not yet made any changes to its variable pay.