Article 92

Capital Requirements Directive (CRD) > TITLE VII > CHAPTER 2 > Section II > Sub-Section 3 > Article 92
Article 92
Remuneration policies
Main content: 

2.   Member States shall ensure that, when establishing and applying the total remuneration policies, inclusive of salaries and discre­ tionary pension benefits, for categories of staff whose professional activities have a material impact on the institution's risk profile, insti­ tutions comply with the following requirements in a manner that is appropriate to their size,  internal  organisation  and  the  nature,  scope and complexity of their activities:

(a)    the remuneration policy is consistent with and promotes sound and effective risk management and does not encourage risk-taking that exceeds the level of tolerated risk of the institution;

(aa) the remuneration policy is a gender neutral remuneration policy;

(b)    the remuneration policy is in line with the business strategy, objec­ tives, values and long-term interests of the institution, and incor­ porates measures to avoid conflicts of interest;

(c)    the institution' s management body in its supervisory function adopts and periodically reviews the general principles of the re­ muneration policy and is responsible for overseeing its implementation;

(d)    the implementation of the remuneration policy is, at least annually, subject to central and independent internal review for compliance with policies and procedures for remuneration adopted by the management body in its supervisory function;

(e)    staff engaged in control functions are independent from the business units they oversee, have appropriate authority, and are remunerated in accordance with the achievement of the objectives linked to their functions, independent of the performance of the business areas they control;

(f)    the remuneration of the senior officers in the risk management and compliance functions is directly overseen by the remuneration committee referred to in Article 95 or, if such a committee has not been established, by the management body in its supervisory function;

(g)    the remuneration policy, taking into account national criteria on wage setting, makes a clear distinction between criteria for setting:

(i)    basic fixed remuneration, which should primarily  reflect relevant professional experience and organisational responsi­ bility as set out in an employee's job description as part of the terms of employment; and

(ii)    variable remuneration which should reflect a sustainable and risk adjusted performance as well as performance in excess of that required to fulfil the employee's job description as part of the terms of employment.

3.    For the purposes of paragraph 2, categories of staff whose profes­ sional activities have a material impact on the institution's risk profile shall, at least, include:

(a)    all members of the management body and senior management;

(b)    staff members with managerial responsibility over the institution's control functions or material business units;

(c)    staff members entitled to significant remuneration in the preceding financial year, provided that the following conditions are met:

(i)    the staff member's remuneration is equal to or greater than EUR 500 000 and equal to or greater than the average remuneration awarded to the members of the institution's management body and senior management referred to in point (a);

(ii)    the staff member performs the professional activity within a material business unit and the activity is of a kind that has a significant impact on the relevant business unit's risk profile.