EBA欧洲银行-Report-on-Benchmarking-of-Remuneration-and-on-High-Earners-2013_74页_2mb

EBA Report Summary: Benchmarking of Remuneration Practices and Data on High Earners

Core Content

The European Banking Authority (EBA) conducted an analysis of remuneration practices and data on high earners across the European Union (EU) for the year 2013, in line with the requirements of Directive 2013/36/EU (CRD IV) and its predecessors. The report provides aggregated data on high earners earning EUR 1 million or more per financial year and evaluates the trends and practices in remuneration, particularly for identified staff.

Main Viewpoints

• Remuneration Benchmarking: The EBA is tasked with benchmarking remuneration practices at the Union level and publishing data on high earners. These requirements were first introduced under CRD III and further developed under CRD IV.
• High Earners Definition: High earners are defined as staff earning EUR 1 million or more in the previous financial year. However, not all high earners are identified staff, as the latter refers to those whose activities have a material impact on the institution's risk profile.
• Data Collection: The data for 2013 was collected by national competent authorities and submitted to the EBA by the end of November 2014. It underwent quality checks and corrections in Q1 2015.
• Key Trends:
  • The number of high earners decreased from 3530 in 2012 to 3178 in 2013, influenced by exchange rate fluctuations and institutional profitability.
  • The percentage of high earners who are identified staff increased slightly over time, reaching 59% in 2013.
  • The ratio of variable to fixed remuneration for identified staff decreased to 104% in 2013, reflecting the implementation of the bonus cap introduced in CRD IV.

Key Information

1. Data on High Earners

• Aggregate Data: High earners are reported at Union level in Annex I and by Member State in Annex II and III.
• Member State Distribution:
  • The UK had the highest number of high earners in 2013 (2086 out of 3178).
  • The percentage of high earners who are identified staff varied significantly between Member States, with the UK showing a higher proportion.
• Payment Brackets:
  • High earners are categorized into payment brackets, with data showing that a smaller percentage of high earners in asset management and investment banking are identified staff compared to other areas.
  • The number of high earners earning EUR 1 million or more decreased from 2012 to 2013, partly due to the EUR-GBP exchange rate.

2. Remuneration Practices

• Remuneration Components:
  • Fixed Remuneration: Base salary and other fixed components.
  • Variable Remuneration: Bonuses and other performance-based components, capped at 100% of fixed remuneration (200% if approved by shareholders).
  • Deferred Variable Remuneration: A significant portion of variable remuneration is deferred, with the ratio of deferred to total variable remuneration varying by Member State.
• Specific Elements:
  • Ex Post Risk Adjustments: Used to adjust variable remuneration based on risk outcomes.
  • Guaranteed Variable Remuneration: Provided to certain staff, with significant amounts awarded in 2013.
  • Severance Payments: Vary by business area and are generally higher for identified staff.
  • Discretionary Pension Benefits: Offered to a portion of identified staff, with median amounts reported by business area.

3. Institutional Performance and Remuneration

• The EBA observed a correlation between the net profit of institutions and variable remuneration of identified staff, suggesting a link between performance and pay.
• The implementation of the bonus cap and the new RTS on identified staff are expected to further influence remuneration practices, with the next benchmarking report (covering 2014 data) scheduled for the end of 2015.

4. EBA's Further Work

• The EBA is updating its guidelines on sound remuneration policies and is focusing on the application of the proportionality principle.
• It is also monitoring the use of the 200% variable remuneration ratio, which requires shareholder approval.
• The EBA is providing input to the European Commission regarding the review of remuneration provisions under Article 161 of CRD IV.

Conclusion

The report highlights the ongoing efforts by the EBA to ensure transparency and consistency in remuneration practices across the EU. It underscores the importance of aligning remuneration with performance and risk, and the impact of regulatory changes such as the bonus cap and the identification of staff based on risk impact. The EBA continues to monitor and analyze these trends, with future reports expected to reflect the full effect of the new regulations.