16 July 2014
The European banking Authority (EBA) published today revised Guidelines on (i) the data collection exercise regarding high earners and (ii) on the remuneration benchmarking exercise. The update ensures that the data collection is in line with the amended provisions laid down in the Capital Requirements Directive (CRD IV), which provides for higher quality of the collected data and will increase transparency of remuneration paid to high earners. The updated Guidelines repeal those published on 27 July 2012.
According to the new requirements provided for in CRD IV, the EBA will collect data on the number of natural persons earning EUR 1 million or more per financial year, in pay brackets of EUR 1 million. The information will be broken down by institution and will include additional details about the job responsibilities of high earners. For this purpose, a new template for the collection of data is also included. For selected institutions, data will be collected for the same functions and business areas through the remuneration benchmarking exercise.
In both data collections, competent authorities will collect from institutions, on an annual basis, detailed information on the structure of remuneration, which will be then submitted to the EBA and disclosed on an aggregated basis.
Both data collections aim at ensuring a high level of transparency regarding the remuneration practices within the Union and will be used to benchmark remuneration trends and practices. These include the use of instruments for the payment of variable remuneration.
The updated guidelines already apply to the data to be collected for performance during 2013. This will allow the EBA to analyse the development of remuneration policies in light of the changes introduced by CRD IV and, in particular, of those related to the limitation of the variable remuneration to 100% of the fixed remuneration (200% with shareholders' approval).
The EBA will issue a joint annual report on the results of both data collection exercises.
These final Guidelines have been developed according to Article 75 of Directive 2013/36/EC (CRDIV) which mandates the EBA to collect information on high earners as well as to use the data disclosed by institutions and forwarded to competent authorities to benchmark remuneration practices.