EBA欧洲银行-Benchmarking-Report-on-Approved-Higher-Ratios-for-Remuneration_12页_595kb

BENCHMARKING OF APPROVED HIGHER RATIOS SUMMARY

Core Content

This report provides an analysis of the application of Article 94(1)(g)(ii) of Directive 2013/36/EU, which allows Member States to permit a higher ratio of variable to fixed remuneration (up to 200%) with shareholder approval. The European Banking Authority (EBA) collected data from competent authorities across the EU for the reference date of December 2014, focusing on Member States that have implemented this national discretion.

Main Points

• Legal Basis: Article 94(1)(g)(ii) of the Directive permits Member States to allow a higher variable-to-fixed remuneration ratio (up to 200%) if approved by shareholders.
• Benchmarking Scope: The EBA conducted benchmarking for 15 Member States that have allowed higher ratios. Some countries, such as Belgium, Slovenia, Sweden, and Romania, have not exercised this discretion and thus are excluded.
• Data Collection: Competent authorities from all EU Member States submitted data to the EBA regarding approved higher ratios.
• Approval Trends:
  • In most Member States, the maximum ratio of 200% was approved.
  • In some countries, such as France and the UK, the bonus cap does not apply to all institutions, allowing for higher ratios without shareholder approval in certain cases.
• Market Share:
  • Institutions with approved higher ratios account for 53% of the EU banking system’s balance sheet total and 48% of the total staff.
  • The market share varies significantly between Member States, with the United Kingdom having the highest at 77.2%.
• Identified Staff:
  • Only 1.68% of the total staff in institutions with approved higher ratios are identified as having a material impact on the institution’s risk profile.
  • At the EU level, 62.7% of identified staff are affected by the higher ratio, with some Member States like Spain and Luxembourg having higher percentages (81.8% and 81.7%, respectively).
• Staff Distribution:
  • Identified staff affected by higher ratios are mainly concentrated in investment banking.
  • The distribution of identified staff across business areas and functions varies significantly between Member States.

Key Information

• Shareholder Approval: In most Member States, institutions must obtain shareholder approval to implement higher ratios. However, in France and the UK, certain institutions are not required to seek approval.
• Non-Approval Cases: Some Member States, such as Bulgaria, Cyprus, and Hungary, have not received any requests for higher ratios.
• Competent Authority Assessments:
  • In most Member States, institutions must demonstrate that the approved higher ratio does not conflict with prudential requirements.
  • In Germany and France, competent authorities conduct detailed assessments.
  • In other Member States, institutions have already demonstrated compliance with prudential obligations.
• Reasons for Approval:
  • Institutions justify higher ratios to remain competitive, attract and retain talent, align pay with performance, and maintain cost flexibility.
  • They also argue that own funds ratios are sufficient to support variable remuneration without limiting capital strength.
• Next Steps:
  • The EBA and competent authorities will continue monitoring the use of higher ratios.
  • Findings will be used in the review of remuneration provisions under Article 161 of the Directive.

Summary of Key Figures

• EU Level:
  • 53.0% of the balance sheet total is represented by institutions with approved higher ratios.
  • 48.0% of the total staff in the EU banking system are in institutions with approved higher ratios.
  • On average, 1.68% of the staff in these institutions is identified staff.
  • 63.0% of identified staff are affected by the higher ratio.
• Member State Level:
  • The percentage of institutions with approved higher ratios ranges from 0.3% (Austria) to 12.2% (France).
  • The percentage of identified staff varies from 0.55% (Spain) to 12.40% (Luxembourg).
  • The number of identified staff affected by higher ratios ranges from 0.00% (Bulgaria, Cyprus, etc.) to 81.8% (Spain).

Annex Overview

The Annex provides a detailed breakdown of the number of institutions, their balance sheet totals, and the number of identified staff affected by higher ratios in each Member State. It highlights that while some countries have a high number of institutions with approved higher ratios, others have not received any requests for such approval.

Conclusion

The report demonstrates that the use of higher variable-to-fixed remuneration ratios is not uniform across the EU. While some Member States have widely adopted this practice, others have not. The EBA will continue to monitor and assess the impact of these ratios on the banking sector and use the findings to inform future regulatory developments.