FBF

We understand that these guidelines facilitate the implementation of Article 75 (3) of Directive 2013/36/EU1 stating that competent authorities shall collect information on the number of natural persons per institution that are remunerated EUR 1 million or more per financial year, in pay brackets of EUR 1 million, including their job responsibilities, the business area involved and the main elements of salary, bonus, long-term award and pension contribution.
However, we consider that the remuneration data already collected in the preceding templates on data collection for high earners already complied with the provisions of the article 75 (3) of the Directive CRD4 and that remuneration data for those among high earners who are also Material Risk Takers are already disclosed in the new templates of the appendix 2 of guidelines on benchmarking exercise.
Finally, we consider that the granularity level of the remuneration data requested does not make any sense for the purpose of this data collection and will not ease comparisons and consistency of the remuneration data between institutions.

Consequently, we suggest keeping the templates used in the past for data collection on high earners which already provided clear breakdowns, by EEA member states and by activities, of number of High earner employees, among them the number of regulated employees, the details of their fixed, variable remuneration, discretionary pension contributions and the part of their variable remuneration subject to deferral. For the purpose of this data collection, we do not consider that it is necessary to provide more detailed information concerning these employees to improve the transparency on their remuneration.
First, the remuneration data requested on high earners are much more detailed than the data requested in the preceding templates on data collection for high earners whereas the remuneration data collected already complied with the provisions of the article 75 §3 of the Directive CRD4. Consequently, as remuneration data requested in the new templates are already disclosed in the appendix II of the guidelines on benchmarking exercise for those among high earners who are also Material Risk Takers and as the preceding templates on data collection for high earners already complied with the directive CRD4, we consider that it is neither necessary nor appropriate to provide more detailed information for this population. Most of them (who are not material risk takers) are not indeed subject to the CRD4 provisions in terms of variable compensation payment conditions (deferral, indexation, performance conditions).
Moreover, due to the collection of
- a separate set of data by each EEA state in which high earners are located broken down
- by business area and responsibility where the high earners carry on the predominant part of their business activities and
- by brackets of EUR 1 million,
the number of sheets by EEA state members to be finally submitted to the regulator will significantly increase and the level of granularity of the data requested will reduce the confidentiality of the data disclosed and will imply to give remuneration data sometimes by individuals.

Indeed, introducing a more granular breakdown by remuneration bracket of 1 million does not make any sense for the purpose of this data collection. Moreover, detailing information by business areas, control and corporate functions that were previously in the ‘All other’ functions column of the preceding template introduces a granularity level within functions which cannot be easily applied to each institution because it depends on their own internal organisation. This level of granularity in activities/functions will not ease comparisons and consistency of the remuneration data between institutions.

As a consequence, we suggest keeping the templates previously used for data collection on high earners which already provided clear and consistent breakdowns, by EEA member states and by activities, of number of High earner employees, among them the number of regulated employees, the details of their fixed, variable remuneration, discretionary pension contributions and the part of their variable remuneration subject to deferral. For the purpose of this data collection, we do not consider that it is necessary to provide more remuneration details concerning these employees.
First, the remuneration data requested on high earners are much more detailed than the data requested in the preceding templates on data collection for high earners whereas the remuneration data collected already complied with the provisions of the article 75 §3 of the Directive CRD4. Consequently, as remuneration data requested in the new templates are already disclosed in the appendix II of the guidelines on benchmarking exercise for those among high earners who are also Material Risk Takers and as the preceding templates on data collection for high earners already complied with the directive CRD4, we consider that it is neither necessary nor appropriate to provide more detailed information for this population. Most of them (who are not material risk takers) are not indeed subject to the CRD4 provisions in terms of variable compensation payment conditions (deferral, indexation, performance conditions).
Moreover, due to the collection of
- a separate set of data by each EEA state in which high earners are located broken down
- by business area and responsibility where the high earners carry on the predominant part of their business activities and
- by brackets of EUR 1 million,
the number of sheets by EEA state members to be finally submitted to the regulator will significantly increase and the level of granularity of the data requested will reduce the confidentiality of the data disclosed and will imply to give remuneration data sometimes by individuals.

Indeed, introducing a more granular breakdown by remuneration bracket of 1 million does not make any sense for the purpose of this data collection. Moreover, detailing information by business areas, control and corporate functions that were previously in the ‘All other’ functions column of the preceding template introduces a granularity level within functions which cannot be easily applied to each institution because it depends on their own internal organisation. This level of granularity in activities/functions will not ease comparisons and consistency of the remuneration data between institutions.

As a consequence, we suggest keeping the templates previously used for data collection on high earners which already provided clear and consistent breakdowns, by EEA member states and by activities, of number of High earner employees, among them the number of regulated employees, the details of their fixed, variable remuneration, discretionary pension contributions and the part of their variable remuneration subject to deferral. For the purpose of this data collection, we do not consider that it is necessary to provide more remuneration details concerning these employees.
Sufficiently clear
You point out that data relating to the performance year 2013 should be submitted by the institutions to competent authorities by 31 August 2014.
It seems that this deadline is not compatible with the 2-month “comply or explain” period given to local regulator after the publication of the guidelines translation. Consequently, we suggest extending the deadline for data submission by the end of 2014.
As previously indicated, we consider that the remuneration data already collected in the preceding templates on data collection for high earners already complied with the provisions of the article 75 (3) of the Directive CRD4 and that remuneration data for those among high earners who are also Material Risk Takers are already disclosed in the new templates of the appendix 2 of benchmarking exercise.

Moreover, we consider that the granularity level of the remuneration data requested does not make any sense for the purpose of this data collection and will not ease comparisons and consistency of the remuneration data between institutions. Finally, the breakdown requested by EEA member states, by bracket of 1Meur and by activities/functions will make even more complex the preparation of data collected for institutions and will contribute in some cases to provide remuneration data by individuals that is prejudicial for the confidentiality of the data disclosed and employees concerned.

Consequently, we suggest keeping the templates used in the past for data collection on high earners which already provide clear and transparent breakdowns, by EEA member states and by activities: the number of High earner employees, among them the number of regulated employees, the details of their fixed, variable remuneration, discretionary pension contributions and the part of their variable remuneration subject to deferral. For the purpose of this data collection, we do not consider that it is necessary to provide more detailed information concerning these employees.
Jean-Claude GUERY
F