The European Banking Authority (EBA) has published a report on benchmarking of remuneration practices in a sample of EU banks, based on data collected on a consolidated basis from 2010 to 2012, together with a related press release. The EBA found that:
- there is an increasing trend in the remuneration paid to risk takers (those that have a material impact on a bank’s risks and profits) and a material shift from variable to fixed remuneration;
- there are significant differences in different banks and in Member States on the amount of remuneration awarded, banks’ pay structure, the application of specific risk alignment requirements and the percentage of risk takers;
- practices concerning the deferral of variable remuneration differ significantly between Member States, depending on the application of the proportionality principle; and
- some firms have introduced “position or role-based allowances”, which are treated as fixed remuneration.
The EBA will now use this report to review its guidelines on remuneration policies and practices. It expects to consult on a revised version of the guidelines by the end of 2014.
View EBA report: benchmarking of remuneration practices at Union level, 13 June 2014
View EBA publishes report on benchmarking of remuneration practices in the EU, 13 June 2014