Bank remuneration policy

The jobs performed by BIS staff members are assessed on the basis of a number of objective criteria - including qualifications, experience and responsibilities - and classified into distinct job grades. The job grades are associated with a structure of salary ranges. Salaries of individual staff members move within the ranges of the salary structure on the basis of performance.

Every three years, a comprehensive survey benchmarks BIS salaries against compensation in comparable institutions and market segments. In years between comprehensive salary surveys, the salary structure is adjusted on the basis of the rate of inflation in Switzerland and the weighted average real wage development in industrial countries.

Through the Bank, BIS staff members have access to a contributory health insurance plan and a contributory defined benefit pension plan. Non-locally hired, non-Swiss staff members recruited for a position at the Bank's headquarters, including senior officials, are entitled to an expatriation allowance. Expatriate staff members are also entitled to receive an education allowance for their children, subject to certain conditions.

The annual remuneration of senior officials, before expatriation allowances, is based on the salary structure published each year in the BIS Annual Report. The Annual General Meeting approves the remuneration of members of the Board of Directors, with adjustments taking place at regular intervals. The total fixed annual remuneration paid to the Board of Directors is published each year in the BIS Annual Report. In addition, Board members receive an attendance fee for each Board meeting in which they participate.

Taxation

BIS staff employed by the Bank's Basel headquarters and by the Asian and Americas representative offices, and domiciled in Switzerland, Hong Kong SAR or Mexico, are, under agreements with the relevant host countries, exempt as a rule from income taxes on Bank salaries and allowances that would otherwise be levied by those host countries. This exemption from national taxation reflects a well established international practice and aims to avoid that an international organisation working in the common interest of all its member states be subject to taxation by the host country state because of its location. The Bank, like many other international organisations, has established its own internal taxation system on basic salaries paid to its staff, who remain in general also subject to the host country's taxes on income from sources other than the Bank, as well as applicable wealth and other taxes.