The European Banking Authority has published the final version of its updated guidelines on the CRDIV remuneration requirements.
The EBA is also proposing amendments to CRDIV, to introduce specific exemptions which would permit smaller and less complex firms to disapply the requirement relating to the deferral of up to 60% of variable pay and the payment of up to 50% of variable pay in shares or other instruments. The EBA is not, however, proposing exemptions to the “bonus cap” (limiting variable remuneration to 100% of fixed remuneration, or 200% with specific shareholder approval), which will therefore apply to all CRDIV firms from 1 January 2017. If implemented by local regulators this will extend the bonus cap to all CRDIV firms, including all banks, asset managers and other investment firms regulated under CRDIV.
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