EBA publishes Guidelines to streamline data collection on remuneration practices
27 July 2012
The EBA published today two sets of Guidelines on the data collection exercise regarding high earners and on the remuneration benchmarking exercise. The objective of these Guidelines is to streamline the data collection and increase the consistency and comparability of the information collected by national competent authorities.
National competent authorities are expected to implement the provisions set out in the Guidelines within two months after their publication. The institutions should submit the relevant data to their national competent authority every year by the end of June. The latter should then submit this information to the EBA each year by the end of August. As a transitional arrangement, the first set of data should be submitted to the EBA by the end of December 2012 and should relate to remunerations for 2010 and 2011.
Guidelines on the data collection exercise regarding high earners
These Guidelines are meant to increase the consistency of information collected on the number of individuals per credit institution in pay brackets of at least 1 million Euros.
As requested by the CRD III Directive, national competent authorities shall collect such information for all credit institutions and the EBA shall disclose the data collected on an aggregate home Member State basis.
Guidelines on the remuneration benchmarking exercise
These Guidelines are meant to increase the consistency of information collected on the remuneration practices of credit institutions and investment firms in order to benchmark remuneration trends.
As requested by the CRD III Directive, national competent authorities shall collect the information and benchmark remuneration trends at national level while the EBA is in charge of performing the benchmarking at European level.
In line with the principle of proportionality, only certain institutions should be subject to this remuneration data collection for the purpose of the benchmarking exercise. National competent authorities have to ensure a representative coverage of their local banking markets in the sample of selected institutions.
Note to the editors
- The Directive 2010/76, so called CRD III, mandates national competent authorities to collect information on remuneration practices of credit institutions and investment firms to benchmark remuneration trends. These data should be submitted to the EBA who will perform benchmarking at the European level. The CRD III also requires national competent authorities to collect information on the number of individuals per institution in pay brackets of at least 1 million Euros. This information shall be sent to the EBA which shall disclose it on an aggregate home Member State basis. The CRD III states that the EBA may elaborate Guidelines to facilitate the implementation of these provisions and ensure the consistency of the information collected.
- In accordance with Article 16(3) of the EBA Regulation, Guidelines set out the EBA's view of appropriate supervisory practices within the European System of Financial Supervision or of how Union law should be applied in a particular area. Competent authorities and financial market participants must make every effort to comply with the guidelines. Before the deadline indicated in the Guidelines, i.e 2 months from the date of publication, Competent authorities must notify the EBA as to whether they comply or intend to comply with these guidelines, or otherwise with reasons for non-compliance. The notifications shall be published on the EBA website.