Remuneration Policy 

​Article 1: Scope and Legal Basis

This remuneration policy determines the principles regarding the remuneration of the members of the board of directors and employees with administrative responsibilities of Çates Elektrik Üretim A.Ş. ("Company") within the scope of the relevant regulations.

This remuneration policy has been prepared in accordance with the Capital Markets Law No. 6362, the Corporate Governance Communiqué No. II.17.1 published by the Capital Markets Board and other relevant legislation.

Article 2: Purpose

The purpose of the remuneration policy is to ensure that practices related to remuneration are planned and executed in accordance with the relevant legislation, the scope and structure of the Company's activities, the Company's strategies and long-term goals.

The remuneration policy is designed to attract new talents to the Company and to protect and reward employees with high performance.

While determining the remuneration policy, sectoral data are taken into consideration in order to compete with the sector, to attract new talents to the Company and to reduce external mobility.

Article 3: Remuneration Principles

The Corporate Governance Committee is authorized and responsible for evaluating the remuneration policy and submitting its recommendations to the Company's board of directors for approval.

The members of the board of directors will be paid a remuneration (including fringe benefits and other benefits) determined by the general shareholders' meeting each year. While determining the remuneration levels of the members of the board of directors, factors such as the responsibility of the board member in the decision-making process, the knowledge, skills and competence that the board member should possess will be taken into consideration and also comparisons will be made with the remuneration levels of the members of the board of directors of similar companies in the sector. Employees with administrative responsibilities will be remunerated at an amount approved by the Board of Directors. Payments made to employees with administrative responsibilities will be designed to encourage the Company to achieve its short and long-term goals and to ensure sustainable performance.
Remuneration will be in line with the Company's ethical values, internal balances and strategic goals. Employees with administrative responsibilities will be remunerated fairly, taking into account the responsibilities they undertake.

Base salaries will be determined every year by reviewing the recommendations of the Corporate Governance Committee and the decision of the Board of Directors.

Bonus payments are payments made to increase the effectiveness of employees in achieving corporate goals, to ensure the continuity of performance, to distinguish successful employees by emphasizing individual performance, and to reward employees who create added value for the Company.

According to the results of performance evaluations, it will be aimed for employees who perform above the expected level to receive higher salary increases and bonuses. Performance measurements for the relevant periods will be taken into account in remuneration and bonus practices, and performance-based payment amounts, especially bonus payments, will not be guaranteed in advance.

If there is a change in the salary grade of employees who are promoted or have a change of position, the new salary of the employee will be determined depending on his/her position in the new grade. Confidentiality of salaries, bonuses and other personal rights is essential.

Members of the board of directors and employees with administrative responsibilities shall not be lent money, extended credit or given guarantees, bails or sureties in favor of them.

Expenses incurred by the members of the board of directors and employees with administrative responsibilities due to their responsibilities and duties will be covered by the Company.

The total amounts paid to the employees with administrative responsibilities and members of the board of directors during the year will be submitted to the information of the shareholders at the following general assembly meeting in accordance with the relevant legislation and will be disclosed to the public within the framework of financial reports.

The board of directors will be responsible for the implementation, development and monitoring of the said remuneration policy. The Corporate Governance Committee carries out the process of monitoring, auditing and reporting of remuneration practices on behalf of the board of directors.