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 sound remuneration policies

    These draft Guidelines set out the governance process for implementing sound remuneration policies across the EU and provide guidance on all other remuneration principles set out in the Capital Requirements Directive (CRD IV). They specify the criteria for mapping all remuneration components into either fixed or variable pay and complement the EBA Opinion on allowances issued in October 2014 by providing additional details in support of the principles formulated in it, so as to ensure compliance with the bonus cap introduced by the CRD IV.

    Status: Final and translated into the EU official languages

  • 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 and translated into the EU official languages

  • 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 and translated into the EU official languages

  • 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 and published in the Official Journal

  • 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 and translated into the EU official languages

  • Regulatory Technical Standards (RTS) on classes of instruments that are appropriate to be used for the purposes of variable remuneration

    These RTS set out requirements to ensure that institutions’ credit quality is reflected in the instruments they issue and that they are appropriate for the purposes of variable remuneration. In particular, these draft RTS introduce requirements for additional Tier 1, Tier 2 and other instruments and they define the write-down and conversion mechanisms for Tier 2 and other instruments. The RTS will be part of the Single rulebook aimed at enhancing regulatory harmonisation in the EU.

    Status: Adopted and published in the Official Journal

  • Guidelines on Internal Governance

    The Guidelines consolidate and update former guidelines on Internal Governance and incorporate new chapters on the transparency of the corporate structure, the role, tasks and responsibilities of the supervisory function and on IT-systems and business continuity management. Their aim is to enhance and consolidate supervisory expectations and ultimately to improve the sound implementation of internal governance arrangements.

    Status: Final and translated into the EU official languages

  • Guidelines on Remuneration Policies and Practices

    These Guidelines provide guidance on sound remuneration policies in the financial sector in order to facilitate the compliance to the remuneration principles included in the amended Annex V of the Capital Requirements Directive III.

    Status: Repealed

Opinions, Reports and other Publications

 

Opinions

Reports