EBA欧洲银行-EBA-Op-2014-10-Opinion-on-remuneration-and-allowances_3页_149kb

EBA Opinion on Remuneration Policies and Role-Based Allowances (EBA/Op/2014/10)

Introduction and Legal Basis

• Purpose: The European Banking Authority (EBA) is monitoring remuneration practices across the EU and has been tasked with evaluating their alignment with the Capital Requirements Directive (CRD IV).
• Background: The financial crisis highlighted the risks associated with inappropriate remuneration policies, which can encourage excessive risk-taking.
• Legal Mandate: The EBA's competence to issue this opinion is based on Articles 29(1)(a) and 34(1) of Regulation (EU) No 1093/2010, as amended.
• Scope: The EBA investigated the nature and use of 'role-based allowances' introduced by EU institutions, which are considered part of fixed remuneration but have variable characteristics.

Core Content and Main Findings

Definition of Remuneration Components

• Fixed Remuneration: Should primarily reflect professional experience and organisational responsibility as outlined in the employee's job description.
• Variable Remuneration: Should be directly linked to performance, or in exceptional cases, to other contractual elements not part of routine employment packages.
• Bonus Cap: Under Article 94(1)(g) of CRD IV, the variable component of remuneration (bonus) must not exceed 100% of the fixed component (200% with shareholders' approval).

Role-Based Allowances

• Definition: Additional payments or benefits provided to staff beyond basic salary and bonuses, often tied to their position and organisational responsibility.
• Characteristics:
  • Not part of basic salary.
  • Not pensionable.
  • Initially granted for a limited period.
  • Can be reduced, suspended, or cancelled at the discretion of the institution.
  • Based on non-routine contractual conditions.
• Classification: The EBA argues that such allowances should not be considered as fixed remuneration due to their variable and discretionary nature.

EBA's Stance

• Non-Compliance Risk: If role-based allowances are not classified as variable remuneration, institutions may violate the bonus cap and other CRD IV requirements.
• Recommendation: Role-based allowances should be treated as variable remuneration if they are:
  • Not predetermined.
  • Not transparent to staff.
  • Not permanent.
  • Provide incentives for risk-taking.
  • Revocable (without prejudice to national law).

Key Information and Implications

• EBA's Opinion: The EBA emphasizes that remuneration policies must align with the risk strategy and profile of the institution and promote sound risk management.
• Supervisory Action: Competent authorities should ensure that institutions update their remuneration policies by 31 December 2014 to reflect the EBA's findings, classifying role-based allowances as variable remuneration.
• Guidelines Update: The EBA's findings will inform future updates to remuneration guidelines, aiming to ensure compliance with CRD IV requirements.

Conclusion

• The EBA has concluded that 'role-based allowances' introduced by institutions do not meet the criteria for fixed remuneration as defined in CRD IV.
• These allowances, due to their discretionary and performance-linked nature, should be classified as variable remuneration.
• Institutions are urged to revise their remuneration policies to ensure they comply with the bonus cap and other regulatory requirements by the specified deadline.

Annex

• Specific comments and detailed analysis of role-based allowances are provided in the Annex to the report.
• The annex includes further examples and considerations regarding the classification of such allowances.