2014年-EBA欧洲银行管理局_EBA_Report_on_the_principles_on_remuneration_policies_and_the_use_of_allowances_10页_259kb

EBA Report Summary on Remuneration Policies and Allowances

I. Core Content and Purpose

This report, published on 15 October 2014, addresses the application of Directive 2013/36/EU (CRD IV) concerning remuneration policies in credit institutions and investment firms. The primary goal is to assess the compliance of remuneration policies with the new variable remuneration limits (100% of fixed remuneration, or 200% with shareholder approval) and to investigate the nature and categorisation of role-based allowances introduced by institutions.

II. Key Points and Findings

1. Background and Regulatory Context

• The CRD IV introduced new limits on variable remuneration, which is a critical tool to align staff incentives with risk management.
• Inappropriate remuneration policies were identified as a contributing factor to the financial crisis, making the correct categorisation of remuneration components essential for financial stability.
• The CEBS Guidelines from 2010 provided the initial framework for defining fixed and variable remuneration, which was later formalised in the CRD IV.

2. Role-Based Allowances

• Role-based allowances are additional payments to traditional fixed remuneration (basic salary) and variable remuneration (bonus).
• These allowances are introduced to increase fixed remuneration in order to avoid exceeding the variable-to-fixed remuneration ratio limits.
• The EBA found that many such allowances are discretionary, not predetermined, not permanent, and not transparent to staff, which raises concerns about their classification.

3. Categorisation of Allowances

• The EBA identified that discretionary role-based allowances (which can be reduced, suspended, or cancelled) should be classified as variable remuneration, not fixed, as they do not meet the criteria for fixed remuneration under the CRD.
• Fixed remuneration must be predetermined, permanent, non-revocable, and not linked to performance.
• If allowances are linked to the economic environment or performance proxies, they are considered variable remuneration.

4. Effects on Remuneration Ratio

• Role-based allowances can reduce the variable-to-fixed remuneration ratio when considered as fixed, but may be discretionarily adjusted.
• If not properly categorised, these allowances can circumvent variable remuneration limits, leading to inappropriate risk-taking incentives.

5. Staff Incentives and Risk Management

• Staff may assume that role-based allowances are fixed, but they can be reduced or revoked in poor performance years.
• This lack of transparency can lead to excessive risk-taking to preserve the allowance.
• The report highlights the need for clear, objective, and transparent criteria for remuneration categorisation to ensure sound risk management.

III. Conclusions and Way Forward

1. Classification of Allowances

• The EBA concludes that discretionary role-based allowances should be classified as variable remuneration to ensure compliance with CRD IV provisions.
• Institutions are expected to review and adjust their remuneration policies to reflect this classification.

2. Regulatory and Supervisory Actions

• Competent authorities are required to ensure that discretionary allowances are appropriately classified and that institutions comply with CRD IV requirements.
• The EBA is developing guidelines on remuneration based on this report, which will be open to public consultation and provide specific criteria for remuneration categorisation.

3. Future Review

• In line with Article 161 of the CRD, the EBA will collaborate with the European Commission to review remuneration provisions.
• The Commission is expected to submit a report on this review by 30 June 2016, which may include further legislative reinforcement.

IV. Relevant CRD Provisions

• Recital 64 distinguishes between fixed (without performance criteria) and variable (performance-linked) remuneration.
• Article 92(1)(a) requires remuneration policies to promote sound risk management.
• Article 92(1)(g) outlines the criteria for setting basic fixed remuneration and variable remuneration.
• Article 94(1)(g)(i) and (g)(ii) set variable remuneration limits (100% or 200% of fixed remuneration).
• Article 94(1)(q) prohibits variable remuneration through non-compliant vehicles.
• Delegated Regulation (EU) No 604/2014 provides technical standards for identifying staff with material impact on risk.

V. Summary of Key Recommendations

• Role-based allowances that are discretionary, not predetermined, not permanent, or not transparent should be classified as variable remuneration.
• Institutions must adjust their remuneration policies to ensure compliance with CRD IV provisions.
• The EBA will develop guidelines to support consistent and effective enforcement of remuneration rules.
• Public consultation will be part of the guideline development process.