On 16 July 2024, the European Banking Authority (EBA) published a report on the application of derogations under Articles 94(3) and 94(5) of the Capital Requirements Directive IV (CRD IV) regarding the pay out of remuneration to identified staff.

The report finds that:

• Most Member States have implemented the derogation under Article 94(3)(a) CRD IV but implementation differs to some extent.
• Member States apply the derogation only to institutions that are not part of a group that is on a consolidated basis a large institution, whilst other Member States allow smaller subsidiaries of large groups to benefit from the derogation.
• The derogation under Article 94(3)(b) CRD IV has been implemented by most Member States with a threshold of EUR 50,000 variable remuneration, but some, considering national remuneration practices, implemented lower thresholds.
• No practices have been identified as regard Article 94(5) CRD IV which allows Member States to ‘decide that staff members entitled to annual variable remuneration below the threshold and share referred to in that point shall not be subject to the exemption set out therein because of national market specificities in terms of remuneration practices or because of the nature of the responsibilities and job profile of those staff members’.