In accordance with regulations set forth by the Banking and Securities Banking Commission, through the General Provisions applicable to Credit Institutions and Brokerage Firms, Banco Monex S.A., Institucion de Banca Múltiple, Monex Grupo Financiero and Monex Casa de Bolsa, S.A. de C.V., Monex Grupo Financiero, have developed a compensation system with clearly defined criterion for the compliance of substantive aspects indicated in the Regulatory Framework, in compliance with the following considerations:
- Defines the responsibilities of social organisms in charge of implementing the compensation schemes.
- Establishes policies and procedures that regulate ordinary and extraordinary compensation of individuals subject to the compensation System consistent with reasonable risk taking.
- Permanently revises payment policies and procedures and implements the necessary adjustments in terms of risks and that represent liquidity, solvency, stability and Institution reputation threats.
- Considers risks faced by Banco Monex, S.A. and Monex Casa de Bolsa, S.A. de C.V., its administrative, control and business units and if applies, any risks assumed by individuals subject to the Compensation System.
- Establishes specific compensation schemes for each position profile of eligible employees or individuals subject to the Compensation System, in acknowledgment of inherent risks from their activities, considering quantitative and qualitative factors.
- Incorporates, based on analysis carried out by the integral risk administration unit, potential effects of risk implementation along with ordinary or extraordinary compensation payments to individuals subject to the compensation system and its corresponding effects over liquidity and profitability of Banco Monex, S.A. and Monex Casa de Bolsa, S.A. de C.V., in order to determine optimum compensation schemes for such individuals.
- Establishes forecasting mechanisms so Banco Monex, S.A. and Monex Casa de Bolsa, S.A. de C.V., may have sufficient flexibility so as to reduce or suspend extraordinary compensation payments when faced with losses, or when implemented risks result higher than expected.
For such purposes, Banco Monex, S.A. and Monex Casa de Bolsa, S.A. de C.V. features a Compensation Committee, which is an organism capable of exerting independent judgment, whose decisions are based on the evaluation of risks assumed by the Bank and the Brokerage Firm. In addition, among other responsibilities, the Committee is accountable for informing the Board of Directors regarding the Compensation System operations, revising the evaluation methodology and prosecute regarding variable compensation payment for each particular case.
The Compensation Manual for Banco Monex, S.A. and Monex Casa de Bolsa, S.A. de C.V. was approved by the Board of Directors, in session on January 27th, 2011.
Publication of the Compensation System