21 January 2022
The European Banking Authority (EBA) launched today a consultation on updates to its Guidelines on the data collection exercise on high earners, which were originally published in 2012 and revised in 2014. The review of the data collection exercises reflect the amended remuneration framework laid down in the Capital Requirements Directive (CRDV), including the introduction of derogations to pay out a part of the variable remuneration in instruments and under deferral arrangements. In addition, the need to update these Guidelines stems from the specific remuneration regime that has been introduced for investment firms and is laid down in the Investment Firms Directive (IFD) and Investment Firms Regulation (IFR). The consultation runs until 21 March 2022.
The CRD and the IFD require competent authorities to collect information on the number of natural persons, per institution and investment firm respectively, who are remunerated EUR 1 million or more per financial year, in pay brackets of EUR 1 million. The information should also include details on their job responsibilities, the business area and the main elements of the salary, bonus, long-term award, and pension contribution.
The new reporting format included in the revised Guidelines will be used for the annual collection of data regarding high earners, starting for the financial year that ends in 2022. For the financial year 2021 the high earners data collection exercise will be conducted under the existing Guidelines for both institutions and investment firms, unless the latter are small and non-interconnected.
Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 21 March 2022. All received contributions will be published at the end of the consultation, unless requested otherwise.
A public hearing on the draft Guidelines on the data collection exercise on high earners as well as on the draft Guidelines on the remuneration and gender pay benchmarking exercises (which are being consulted on in parallel) will take place via conference call on 17 February 2022 from 14:00 to 15:30 CET.
Legal basis and next steps
The EBA has drafted these Guidelines in accordance with Article 75 (3) of Directive 2013/36/EU and Article 34(4) of Directive (EU) 2019/2019 that provide specific mandates to the EBA to issue Guidelines for the collection of data of high earners.
The new reporting format will apply for the collection of data in 2023 for the financial year 2022.