Remuneration

Institutions' remuneration policies for staff members whose professional activities have material impact on the institutions' risk profile shall ensure that remuneration is consistent with sound and effective risk management and provides an incentive for prudent and sustainable risk taking. The requirements set out in the Capital Requirements Directive (CRD) are complemented by more detailed Guidelines on Remuneration Policies. Guidelines on Remuneration Policies and Practices were initially published by the Committee of European Banking Supervisors (CEBS). The EBA will review and update those Guidelines in light of the requirements laid down in the revised CRD. The EBA will submit draft regulatory standards to the European Commission as mandated by the CRD, with respect to the criteria for identifying risk takers and additional tier-1, tier-2 and other instruments which can be used for paying variable remuneration.

Technical Standards, Guidelines & Recommendations

  • 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 Capital Requirements 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. The updates to these Guidelines, which had originally been published on 27 July 2012, follow on from changes in reporting requirements as laid down in the Capital Requirements Directive and Regulation (CRDIV and CRR).

    Status: Final

  • 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 Capital Requirements 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. The updates to these Guidelines, which had originally been published on 27 July 2012, follow on from changes in reporting requirements as laid down in the Capital Requirements Directive and Regulation (CRDIV and CRR).

    Status: Final

  • Regulatory Technical Standards for the definition of material risk takers for remuneration purposes

    These Regulatory Technical Standards (RTS) will set out process and criteria for the identification of categories of staff who have a material impact on the institution’s risk profile, so-called ‘Identified Staff’. The objective is to harmonise the identification of staff to whom the recently agreed regulatory requirements for the payment of variable remuneration will apply.

    Status: Adopted by the European Commission and under scrutiny by EU legislators

  • Guidelines on the applicable notional discount rate for variable remuneration

    These Guidelines aim to set out the calculation of the discount rate for variable remuneration and clarify how the discount factor should be applied.

    Status: Final

Opinions, Reports and other Publications

 

Opinions

Reports