2017 ANNUAL REPORT
STRONG MEXICANS
CORPORATE
GOVERNANCE
We have the best corporate
governance practices, which
has earned us the recognition
of Mexican institutions and
international agencies
CORPORATE
GOVERNANCE
We have the best corporate
governance practices, which
has earned us the recognition
of Mexican institutions and
international agencies
CORPORATE GOVERNANCE
SRS 102-15 SRS 102-16 SRS 102-18 SRS 102-20 SRS 102-26 SRS 102-28 SRS 102-36 SRS 405-1
Grupo Financiero Banorte is the strong bank of Mexico, not only because of its reputation and excellence in financial services, but also for having the best corporate governance and sustainability practices, which has earned us the recognition of Mexican institutions and international organizations.
We have a work team responsible for managing corporate governance issues in order to align the Group with international best practices policies and also to ensure that these policies and bodies are in alignment with our shareholders’ interests.
The Board of Directors is the governing body of Grupo Financiero Banorte, charged with carrying out the necessary actions to ensure sound corporate governance, safeguarding the interests of shareholders, customers, employees, suppliers and communities.
At GFNorte we are always one step ahead. This year, a policy to promote equality between men and women was approved. This policy is included in the Nominating Committee’s operational and functional regulations, and includes provisions that promote dignity, equity, inclusion and diversity (gender, race, nationality, culture, beliefs, language, marital status, ideology, political opinions or any other personal, physical or social condition), to foster an inclusive working environment within the governing body of respect and free of discrimination. In addition, it was approved that the Nominating Committee, in the election process of Board member candidates, ensures that 20% of the members of the Board of Directors are women.
It is important to stress that the selection process, remuneration and conditions for the development of the activities of members of the Board of Directors shall be determined exclusively according to the criteria of merit and ability in relation to the requirements of the position.
In GFNorte, we established a remuneration policy for the members of the Board of Directors. In 2016 we carried out a thorough review of the policy with the assistance of a firm specializing in the field to align the remuneration of the Board of Directors with international best practices. Remuneration for 2017 was carried out in accordance with the new policy. It is important to mention that GFNorte does not publicly disclose this policy nor the specific remuneration of each of the Board members.
The Internal Control System is in charge of monitoring that mechanisms and internal controls are established to verify that the acts of GFNorte and their financial institutions adhere to applicable regulations, in addition to implementing methodologies that enable reviewing compliance with the foregoing. Also to inform the Board of Directors the situation of Banorte’s Internal Control System for the financial institutions under their responsibility or legal entities over which it exercises control, including any irregularities detected, if any.
GFNorte assigns special attention to Internal Control in the realization of operations, in originations, processing and disclosure of accounting and financial information, in relationships with investors, customers and suppliers and in its compliance of applicable regulations.
Grupo Financiero Banorte’s Code of Conduct establishes that members of the Board of Directors, officers and employees must ensure that the activities and businesses, performed or promoted by them, do not have a negative impact on the natural resources of communities in which they participate, as well as supervise, if there is any negative impact on these resources, that a conducive way to replace these actions or mitigate ecological damage is carried out.
On the other hand, we hired the services of an internationally recognized specialized external firm to evaluate the performance of the Group’s Corporate Governance framework and compare it with other non-Mexican public financial businesses. As a result of this study, we obtained a guide of the Group’s strengths and weaknesses, as well as a multi-year work plan to implement and manage elements that are considered areas of opportunity.
SRS 102-22 SRS 405-1
The Board of Directors is composed of 15 members, of which 11 are independent, i.e. 73%, which exceeds the 25% established in the legislation and the 60% recommended by international corporate best practices. Each proprietary member has an alternate.
The Board of Directors meets on a quarterly basis and in exceptional cases, at the request of the Chairman of the Board, 25% of the proprietary owners, or the Presidents of the Corporate Practices and Audit Committees.
Average attendance of the Board of Directors: 98.3%
The Audit and Corporate Practices Committee holds 12 annual meetings, plus extraordinary sessions that may be required; the Risk Policies Committee meets for 12 ordinary sessions and one extraordinary session ach yar; the Human Resources Committee holds four sessions a year, and the Nominations Committee meets at least once a year or whenever it is convened by the President.
Average attendance of each Committee:
| PROPRIETARY BOARD MEMBERS | ||||
|---|---|---|---|---|
| Name | Gender | Member since | ||
| 1. | Carlos Hank Gonzalez | Proprietary President | Male | October 2014 |
| 2. | Juan Antonio Gonzalez Moreno | Proprietary | Male | April 2004 |
| 3. | David Juan Villarreal Montemayor | Proprietary | Male | October 1993 |
| 4. | Jose Marcos Ramirez Miguel | Proprietary | Male | July 2011 |
| 5. | Everardo Elizondo Almaguer | Proprietary Independent | Male | April 2010 |
| 6. | Carmen Patricia Armendariz Guerra | Proprietary Independent | Female | April 2009 |
| 7. | Hector Federico Reyes Retana y Dahl | Proprietary Independent | Male | July 2011 |
| 8. | Eduardo Livas Cantu | Proprietary Independent | Male | April 1999 |
| 9. | Alfredo Elias Ayub | Proprietary Independent | Male | April 2012 |
| 10. | Adrian Sada Cueva | Proprietary Independent | Male | April 2013 |
| 11. | Alejandro Burillo Azcarraga | Proprietary Independent | Male | April 2013 |
| 12. | Jose Antonio Chedraui Eguia | Proprietary Independent | Male | April 2015 |
| 13. | Alfonso de Angoitia Noriega | Proprietary Independent | Male | April 2015 |
| 14. | Olga Maria del Carmen Sanchez Cordero Davila | Proprietary Independent | Female | April 2016 |
| 15. | Thomas Stanley Heather Rodriguez | Proprietary Independent | Male | April 2016 |
| ALTERNATES | ||||
|---|---|---|---|---|
| Name | Gender | Member since | ||
| 1. | Graciela Gonzalez Moreno | Alternate | Female | April 2013 |
| 2. | Juan Antonio Gonzalez Marcos | Alternate | Male | April 2014 |
| 3. | Carlos de la Isla Corry | Alternate | Male | April 2016 |
| 4. | Clemente Ismael Reyes Retana Valdes | Alternate Independent | Male | April 2017 |
| 5. | Alberto Halabe Hamui | Alternate Independent | Male | April 2014 |
| 6. | Roberto Kelleher Vales | Alternate Independent | Male | April 2014 |
| 7. | Manuel Aznar Nicolin | Alternate Independent | Male | March 2007 |
| 8. | Robert William Chandler Edwards | Alternate Independent | Male | April 2015 |
| 9. | Isaac Becker Kabacnik | Alternate Independent | Male | April 2002 |
| 10. | Jose Maria Garza Treviño | Alternate Independent | Male | April 2014 |
| 11. | Javier Braun Burillo | Alternate Independent | Male | April 2015 |
| 12. | Rafael Contreras Grosskelwing | Alternate Independent | Male | April 2015 |
| 13. | Guadalupe Phillips Margain | Alternate Independent | Female | April 2015 |
| 14. | Eduardo Alejandro Francisco Garcia Villegas | Alternate Independent | Male | April 2016 |
| 15. | Ricardo Maldonado Yañez | Alternate Independent | Male | April 2016 |
| Hector Avila Flores | Secretary (non-member) |
Male | ||
Carlos Hank Gonzalez (46 years old)
Proprietary Chairman
Professional background
He is currently Chairman of the Board of Directors of GFNorte, a position he has held as from January 1st, 2015. At Gruma, world leader in the production of corn flour and tortillas with a presence in over 100 countries, he played a key role since December 2012, where he served as Vice-President of the Board of Directors and joined the Executive Committee for designing a healthy, responsible financial strategy and generated value for the company.
In 1997 he was appointed Managing Director of Interacciones Casa de Bolsa, in 1999 Managing Director of Banco Interacciones and in 2000 Managing Director of Grupo Financiero Interacciones (GFI). At the beginning of 2003 he became Deputy General Director of GFNorte and towards the end of the same year returned to GFI to position it as a financial group with high profitability, specialized in funding to states and municipalities. He led a successful public offering in 2013, which strengthened GFI as a public company with growing liquidity in the stock market. In 2008, he was appointed as Managing Director of Grupo Industrial Hermes, founded in 1978, with different lines of business in infrastructure, energy, automotive, transportation and as of 2013, tourism.
Academic background
He graduated with a degree in Business Administration majoring in finance from the Universidad Iberoamericana and joined the Board of Directors of GFNorte in October 2014.
Juan Antonio Gonzalez Moreno (60 years old)
Proprietary
Professional background
He is Chairman of the Board of Directors and CEO of Gruma and Gimsa, having served as Managing Director of Gruma Asia and Oceania, and Senior Vice-President of Special Projects at Gruma Corporation. Chairman and Managing Director of CarAmigo United States, Vice-President of the Eastern and Central Regions for MissionFoods, President and Vice-President of Sales for Azteca Milling.
Academic background
He holds a degree in Business Administration from Universidad Regiomontana and an MBA from the University of San Diego, California. He joined the Board of Directors of GFNorte in April 2004.
David Juan Villarreal Montemayor (69 years old)
Proprietary
Professional background
He serves as CEO and majority shareholder of Artefactos Laminados, S.A. de C.V., and is currently Chairman of the Board of Directors and Deputy Managing Director of Inmobiliaria Montevi, S.A. de C.V. and of Inmobiliaria Monyor, S.A. de C.V. He is a Regional Advisory Director of Banco Nacional de Mexico, S.A. (Banamex) and financial adviser and business developer at SISMEX, Sistemas Mexicanos, S.A. de C.V. In addition, he has served as Deputy Manager of Operations from 1972 to 1990 in Artefactos Laminados.
Academic background
He received his degree as an Electrical / Mechanical Engineer and his Master Degree in Automatic Control Sciences from the Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM), as well as having participated in the Pan-American Institute’s Program for Senior Management (IPADE). He joined the Board of Directors of GFNorte in October 1993.
Jose Marcos Ramirez Miguel (54 years old)
Proprietary
Professional background
CEO of GFNorte and Banco Mercantil del Norte, S.A. since November 2014. He served as Banorte’s Corporate Managing Director and Managing Director of Wholesale Banking. His work experience is essentially in banking, beginning as an interdisciplinary consultant at Peat Marwick Mexico and subsequently entered the Financial Engineering area at Operadora de Bolsa. In 1989, he founded Finventia, highlighting his participation in the issuance of the first private Eurobond, following the restructuring of Mexico’s debt. He also worked at Banque Nacionale de Paris and Banque Indosuez Mexico as a trader in the Mexican market. From 1993 to 1999 he worked at Nacional Financiera S.N.C. in development banking in various management positions. Subsequently, he worked for 11 years with Grupo Financiero Santander where he served as CFO, Managing Director of Wholesale Banking, Managing Director of Casa de Bolsa Santander and Vice-President of the group. In 2007, he also served as Chairman of the Mexican Association of Stock Brokers.
Academic background
He is an Actuary graduate from the Universidad Anáhuac, with postgraduate studies in Finance from the Instituto Tecnológico Autónomo de México (ITAM), and holds a Master in Business Administration (MBA) from ESADE in Barcelona. He joined the Board of Directors of GFNorte in July 2011.
Everardo Elizondo Almaguer (74 years old)
Proprietary Independent
Professional background
He is a Professor of international finance at the EGADE Business School, ITESM. He held the Directorate of Economic Studies of Grupo Industrial Alfa (Grupo Alfa today). He founded the index consultancy firm Economía Aplicada, S.A. and was Deputy Governor of the Bank of Mexico. He was the founder and first director of the graduate school of the faculty of Economy of the Universidad Autonoma de Nuevo Leon.
Academic background
He holds a Bachelor in Economics from the Universidad Autonoma de Nuevo Leon, as well as a Master degree and is a candidate for a PhD in Economics from the University of Wisconsin-Madison. He joined the Board of Directors of GFNorte in April 2010.
Carmen Patricia Armendariz Guerra (62 years old)
Proprietary Independent
Professional background
She currently serves as Managing Director of Sustainable Finance in Sociedad Financiera Popular, dedicated to the financing of projects for entrepreneurs and is associate director and founder of Valores Financieros, a company dedicated to banking system consultancy.
She has served as an advisor to the Secretary of Finance and Public Credit, in which she coordinated negotiations for the Free Trade Agreement in financial services, was Vice-President of Supervision at the National Banking and Securities Commission, as well as making a name for herself as Associate Director of the Bank for International Settlements (BIS), responsible for analysis of Basel II impacts on emerging markets. She was advisor to Roberto Gonzalez Barrera, former Chariman of GFNorte and Director of Special Projects at GFNorte.
She has served as an international consultant in banking crises, Professor of Economics at the Instituto Tecnologico Autonomo de Mexico (ITAM) and author of numerous academic and specialized publications in banking and macroeconomics.
Academic background
She is an Actuary Mathematician of the Universidad Nacional Autonoma de Mexico (UNAM) and holds a Master in Economics from the same institution, as well as a Ph.D. in Economics from Columbia University in New York. She joined the Board of Directors of GFNorte in April 2009.
Hector Federico Reyes-Retana y Dahl (71 years old)
Proprietary Independent
Professional background
He serves as a consultant and Independent Board member. He has held various positions in the public sector, at the Ministry of Economy where he founded the state-owned agency ProMexico, Inversion y Comercio. He served as Managing Director of Banco Nacional de Comercio Exterior, S.N.C (Bancomext) and Managing Director of Banca Confia, as well as Director of International Operations at the Bank of Mexico (Banxico). In the private sector he served as Managing Director of Grupo Financiero Mifel and Banca Mifel. He was a member of the Board of Directors of the National Savings Bank (Bansefi) and held the position of first Vice-President of the Mexican Association of Banks and was Vice-President of the Bankers Association of Mexico, among other positions.
Academic background
He is an Industrial Engineer graduate of the Universidad Iberoamericana and holds a Master in Business Administration (MBA) from Cornell University in New York. He joined the Board of Directors of GFNorte in July 2011.
Eduardo Livas Cantu (74 years old)
Proprietary Independent
Professional background
He is currently a member of the Executive Committee of Gruma, having served as Director of Operations at Gimsa from 1975-1978 and Managing Director of the Central America Division from 1978-1982. He was Managing Director of Gruma Corp. (USA Division) from 1982-1994 and CEO of Gruma and Gimsa from 1994-1999. Additionally, he was a consultant from 1999-2014.
Academic background
He holds a degree in Law from the Universidad Autonoma de Nuevo Leon (UANL) and a Doctorate in Economy from the University of Texas in Austin. He joined the Board of Directors of GFNorte in April 1999.
Alfredo Elias Ayub (67 years old)
Proprietary Independent
Professional background
He is currently Chairman of the Board of Directors of Promociones Metropolis, S.A. de C.V. and member of the Board of Iberdrola USA and Rotoplas. Previously, he served as Managing Director of the Federal Commission of Electricity (CFE), Managing Director of Aeropuertos y Servicios Auxiliares (ASA) and held various positions within the Ministry of Energy, Mines and State-owned Industry. He sat on the Boards of the Harvard Business School Alumni Association, Nacional Financiera, Multibanco Mercantil de Mexico and Banco Internacional. He also served as Chairman of the Board of the Instituto Mexicano de Investigaciones Electricas and as Chairman of the Board of the Harvard Mexico Foundation.
Academic background
He is a Civil Engineer graduate of the Universidad Anahuac, with a Master in Business Administration (MBA) from the Harvard Business School. He joined the Board of Directors of GFNorte in April 2012.
Adrian Sada Cueva (42 years old)
Proprietary Independent
Professional background
He has been CEO of Vitro since March 2013 and member of the Board of Directors of Vitro, S.A.B. de C.V. since 2010. He has also served as Director of Vitro Cristalglass (Spain), Managing Director of Vitro Automotriz, Director of Internal Restructuring, Director of Administration and Finance and Managing Director of Vitro’s packaging business. Additionally, he sits on the Boards of Comegua, Industrial Club of Monterrey, the Universidad de Monterrey, and the Chamber of the Transformation Industry (CAINTRA).
Academic background
He holds a degree in Business Administration from the Instituto Tecnologico y de Estudios Superiores de Monterrey (ITESM) and a Master in Business Administration (MBA) from Stanford University. He joined the Board of Directors of GFNorte in April 2013.
Alejandro Burillo Azcarraga (66 years old)
Proprietary Independent
Professional background
He is Chairman of the Board of Directors of Grupo Pegaso, with presence in sectors such as: technology, telecommunications, media, real estate, sports, culture and philanthropy, agro-industry, tourism, services and aeronautics. He has participated as majority and strategic partner in various companies and financial institutions such as Ixe Bank, Laredo National Bank, Telefonica Movistar and Atlante Soccer Club among others. He joined the Board of Directors of GFNorte in April 2013.
Jose Antonio Chedraui Eguia (51 years old)
Proprietary Independent
Professional background
He is CEO of Grupo Comercial Chedraui. Additionally, he has held positions as Commercial Director and then as CEO of Comercial de Las Galas. He also participates in the Fundacion Chedraui, Young Presidents’ Organization and Mexico Nuevo organizations.
Academic background
He holds a Bachelor’s Degree in Accounting and Finance from the Universidad Anahuac. He joined the Board of Directors of GFNorte in April 2015.
Alfonso de Angoitia Noriega (55 years old)
Proprietary Independent
Professional background
He currently serves as the Executive Co-Chair and President of the Finance Committee of Grupo Televisa, S.A.B. having been a member of the Board and of the company’s Executive Committee since 1997. He also sits on the Board of Directors of Cablevision, S.A. de C.V., Innova, S. de R.L. de C.V. (Sky), Cablemas Telecomunicaciones, S.A. de C.V., Operbes, S.A. de C.V. (Bestel), TV Internacional, S.A. de C.V. and Grupo Axo, S.A.P.I. de C.V., as well as The Americas Society. Additionally, he is President of the Board of Trustees of Fundacion Kardias and a member of Fundacion UNAM and the Mexican Health Foundation. Prior to joining Grupo Televisa, he was a founding partner of the law firm Mijares, Angoitia, Cortes y Fuentes, S.C. He served as Executive Vice-President of Administration and Finance from 1999 to 2003. He was also a member of the Board of Grupo Modelo, S.A.B. de C.V. from 2005 to 2013 and of The American School Foundation from 2001 to 2010.
Academic background
He received his Law degree from the Universidad Nacional Autonoma de Mexico (UNAM). He joined the Board of Directors of GFNorte in April 2015.
Olga Maria del Carmen Sanchez Cordero Davila (71 years old)
Proprietary Independent
Professional background
She is Public Notary 182 of Mexico City and of the World Heritage Property of Mexico City. She is a member of the International Women’s Forum, International Federation of University Women and the International Association of Women Judges. Likewise, she is also a member of the Mexican Bar, the Colegio de Abogados A.C., the Colegio de Notarios del D.F., A.C. and the National Association of Mexican Notaries A.C. She is a Board member of Fundacion UNAM and numerary member number one of the Grupo de los 100 of the Center Development and Legal Research for Latin America. She was appointed Minister of the Supreme Court of Justice of the Nation (1995-2015) and Numerary Judge of the Superior Court of Justice of the Federal District (1993-January 1995). A professor at the UNAM and the author of several publications, she served as Director of the Seminary of General and Legal Sociology of the UNAM Law Faculty (1980-1984).
Academic background
She received her Bachelor degree in Law from the Universidad Nacional Autonoma de Mexico (UNAM) with a postgraduate degree in Social Policy and Administration from the University College of Swansea in Great Britain. She received two Honorary Doctorate degrees from the Universidad Autonoma de Morelos and the Universidad Autonoma de Nuevo Leon. She joined the Board of Directors of GFNorte in April 2016.
Thomas Stanley Heather Rodriguez (64 years old)
Proprietary Independent
Professional background
Currently a partner in the firm Ritch, Mueller, Heather and Nicolau, S.C. specializing in external financing, restructuring and securities placement. He is the legal advisor for Consejo Coordinador Empresarial (CCE) and a permanent member of the Committee responsible for the drafting of the code of best corporate practices.
He has served as Arbitrator of the International Court of Arbitration and as Conciliator for the Federal Institute of Bankruptcy Specialists (IFECOM). He was a representative of the International Insolvency Institute before the United Nations Commission on International Trade Law (UNCITRAL) and a member of the Mexican Bar, Colegio de Abogados, A.C.
Previously, he was a founding partner of Heather & Heather, S.C., from 2010 until its merger in 2013 to form Ritch, Mueller, Heather and Nicolau, S.C. and of White & Case, LLP in their Mexico City offices from 2005 to 2009. He is a member of the Board of Directors and of the Audit and Corporate Practices Committee (CAPS) of Grupo Bimbo, S.A.B. de C.V.; and Independent member of the Board and Chairman of the CAPS of Gruma, S.A.B. de C.V. and Grupo Industrial Maseca, S.A.B. de C.V. He was independent Board member of Grupo Modelo, S.A.B. de C.V. (1997-2005), of GSF Telecom Holdings, S.A.P.I. (2012-2014) and Nikko Hotels (until 2013). Likewise, he also participated as an Independent Board member of Grupo Financiero Scotiabank and subsidiaries (2001-2016).
Academic background
He received his degree in Law from the Escuela Libre de Derecho, a Master degree in Comparative Jurisprudence - Financial Law from the University of Texas in Austin. Likewise, he has several diplomas from the Universidad Panamericana and the University of New York. He joined the Board of Directors of GFNorte in April 2016.
The following committees are comprised of independent members, and some of them, by officials of the institution, in accordance with applicable regulations:
| AUDIT AND CORPORATE PRACTICES COMMITTEE | ||||
|---|---|---|---|---|
| Members | Gender | |||
| 1. | Hector Federico Reyes Retana y Dahl | Proprietary Independent | President | Male |
| 2. | Carmen Patricia Armendariz Guerra | Proprietary Independent | Member | Female |
| 3. | Thomas Stanley Heather Rodriguez | Proprietary Independent | Member | Male |
| 4. | Robert William Chandler Edwards | Alternate Independent | Member | Male |
| 5. | Manuel Aznar Nicolin | Alternate Independent | Member | Male |
| 6. | Clemente Ismael Reyes Retana Valdes | Alternate Independent | Member | Male |
| RISK POLICY COMMITTEE | ||||
|---|---|---|---|---|
| Members | Gender | |||
| 1. | Eduardo Livas Cantu | Proprietary Independent | President | Male |
| 2. | Everardo Elizondo Almaguer | Proprietary Independent | Member | Male |
| 3. | Hector Federico Reyes Retana y Dahl | Proprietary Independent | Member | Male |
| 4. | Thomas Stanley Heather Rodriguez | Proprietary Independent | Member | Male |
| 5. | Manuel Aznar Nicolin | Alternate Independent | Member | Male |
| 6. | Robert William Chandler Edwards | Alternate Independent | Member | Male |
| 7. | Jose Marcos Ramirez Miguel | CEO GFNorte | Member | Male |
| 8. | Guillermo Chavez Eckstein | DG Credit & Risk Management / UAIR | Member | Male |
| HUMAN RESOURCES COMMITTEE | ||||
|---|---|---|---|---|
| Members | Gender | |||
| 1. | Everardo Elizondo Almaguer | Proprietary Independent | President | Male |
| 2. | Eduardo Livas Cantu | Proprietary Independent | Member | Male |
| 3. | Guillermo Chavez Eckstein | Comprehensive Risk Management representative | Member | Male |
| 4. | Javier Beltran Cantu | Human Resources representative | Member | Male |
| 5. | Rafael Arana de la Garza | Financial Planning representative | Member | Male |
| 6. | Isaias Velazquez Gonzalez | Internal Auditor | Member with voice but no vote | Male |
| NOMINATING COMMITTEE | ||||
|---|---|---|---|---|
| Members | Gender | |||
| 1. | Carlos Hank Gonzalez | Proprietary President | President | Male |
| 2. | Jose Marcos Ramirez Miguel | Proprietary | Member | Male |
| 3. | Juan Antonio Gonzalez Moreno | Proprietary | Member | Male |
| 4. | Everardo Elizondo Almaguer | Proprietary Independent | Member | Male |
| 5. | Alfonso de Angoitia Noriega | Proprietary Independent | Member | Male |
| 6. | Jose Antonio Chedraui Eguia | Proprietary Independent | Member | Male |
| 7. | Thomas Stanley Heather Rodriguez | Proprietary Independent | Member | Male |
The following committees support the Directorate General of GFNorte:
| Senior management of grupo financiero banorte | |
|---|---|
| Members | Position |
| Jose Marcos Ramirez Miguel | CEO Grupo Financiero |
| Jose Armando Rodal Espinosa | Managing Director of Wholesale Banking |
| Carlos Eduardo Martinez Gonzalez | Managing Director of Retail Banking |
| Fernando Solis Soberon | Managing Director of Long Term Savings |
| Manuel Antonio Romo Villafuerte | Managing Director of Methods of Payment |
| Guillermo Chavez Eckstein | Managing Director of Credit and Risk Management |
| Rafael Arana de la Garza | CFO |
| Carlos de la Isla Corry | Managing Director of Presidential Advisory |
| Sergio Garcia Robles Gil | Presidential Advisor for Regional Boards |
| Isaias Velazquez Gonzalez | Managing Director of Audit |
Senior Management includes the Managing Director, his direct reports and, at the same time, the direct reports of these, i.e., the first three levels of the organizational hierarchy. At GFNorte we have a variable compensation plan specific to this group, subject to the fulfillment of the financial metrics established as objectives to achieve within the 20/20 Vision strategy.
Financial metrics are quantifiable and measurable over time and include concepts such as return on capital and efficiency index.
In general, the variable compensation plan establishes specific financial objectives to meet annually until 2020. At GFNorte we do not disclose our retribution policy, executive compensation plan, or individual remuneration of senior management.
REGIONAL BOARDS
The regional Boards are an important means to understand the needs of customers and each of its regions, giving us the ability to capitalize on opportunities and to offer better and more financial products continuously, thereby keeping GFNorte at the forefront.
In its sixth year of operation, 12 Board sessions were held in the different headquarters of the country, with the participation of exhibitors such as Jesus Reyes Heroles, Carlos Elizondo Mayer-Serra, Gerardo Rodríguez Regordosa, Luis Carlos Ugalde, Dr. Leo Zuckerman, Jorge Nacif Iñigo and Roy Campos Esquerra. Also honoring us with his presence was Ildefonso Guajardo Villarreal, Secretary of Economy, who shared perspectives on the North American Free Trade Agreement negotiations with us.
In 2017 we installed 32 local boards with the objective of geographically complementing the purpose of the regional boards and thus strengthening our 20/20 Vision strategy. These boards, comprised of customers from various business segments, function as a space for dialogue and feedback between customers and local managers, where opinions are exchanged and advice provided about the trends and opportunities of each zone.
This year regional advisers were invited to participate, together with their children, in Grupo Financiero Banorte’s most important institutional event of the year, the Banorte Strategy 2017 Forum under the slogan “A strong Mexico, in the future Mexico”, which was held on August 22nd and 23rd in Mexico City, being the meeting point for young talents, strong Mexicans and international figures, to analyze the current context of Mexico, as well as its challenges and opportunities.
On the first day, Alfredo Quiñones-Hinojosa, Dr. Q., gave a lecture entitled “Forming dreams and strengthening bridges”. Six members of the Mexican Debate Team analyzed the role of social networks in the consumption of information. Alejandro Diaz de Leon, Everardo Elizondo and Alejandra Palacios participated in the workshop “Mexico’s strengths to compete and win”. Marc Levinson hosted the workshop “Infrastructure and energy: engines of investment and productivity”. Luis Lojero and Ramon Carazo held the workshop “Jobs and skills for the future”. Miguel Angel Mancera, head of the Mexico City Government Mexico and Jose Antonio Meade, then Secretary of Finance and Public Credit accompanied us for the welcome dinner.
Lawrence H. Summers, former US Secretary of the Treasury and President Emeritus of Harvard University presented the lecture on “North America in the new global economy” on the second day of sessions. The panel of “The strength of the states in the face of NAFTA renegotiations” enjoyed the participation of Governors Carlos Mendoza Davis, Javier Corral Jurado, Claudia Pavlovich Arellano and Jaime Rodriguez Calderon. Moreover, sitting on the “Strong entrepreneurs, a strong Mexico” panel were Juan Domingo Beckmann Legorreta, Jose Antonio Chedraui Eguia, Blanca Treviño de Vega, Alejandro Ramirez Magaña and Carlos Hank Gonzalez.
“ The Regional Boards are an important means to understand the needs of customers in each of its regions.”
In order to give other distinguished members of the business community the opportunity to participate, and based on GFNorte’s established protocol, in 2018 the renewal process will be held for some members of the regional boards to give other prominent members of the business community of our country an opportunity to collaborate with us.
Northwest (9)
Ciudad Juarez
Chihuahua
Culiacan
Hermosillo
Los Cabos
Los Mochis
Mazatlan
Mexicali
Tijuana
Metropolitan (6)
Hidalgo
Morelos - Guerrero
Puebla - Tlaxcala
Veracruz
Naucalpan - Tlalnepantla
Toluca
Central (5)
Aguascalientes
Guanajuato
Queretaro
San Luis Potosi
Zacatecas
Peninsular (5)
Cancun
Chiapas
Oaxaca
Tabasco
Yucatan
North (4)
Durango
Comarca Lagunera
Reynosa - Matamoros
Saltillo
West (3)
Colima - Manzanillo
Michoacan
Pto. Vallarta - Tepic
* The local board Altos de Jalisco is in the integration process; once integration is concluded, there will be a total of 33 boards.
“ In 2017 we installed 32 local boards with the objective of geographically complementing the purpose of the regional boards and thus strengthening our 20/20 Vision strategy.”