16. State support and remuneration

In line with section 6 of these present guidelines, where investment firms benefit from exceptional government intervention, competent authorities and investment firms should establish regular contacts with regard to the setting of the bonus pool of possible variable remuneration and the award of variable remuneration to ensure compliance with Article 31 of Directive (EU) 2019/2034 and any additional restrictions imposed by competent authorities. Any payment of variable remuneration should not endanger compliance with the established recovery and exit plan from exceptional government intervention.

For investment firms that fall under the scope of Directive 2014/59/EU, the Communication from the Commission on the application, from 1 August 2013, of State aid rules to support measures in favour of banks in the context of the financial crisis (2013/C 216/01) should be applied within the remuneration policies. Any condition with regard to remuneration imposed on investment firms when state aid has been approved by the Commission and granted and within any related acts should be reflected appropriately in the investment firms’ remuneration policy.

The variable remuneration of an investment firm’s staff should not prevent an orderly and timely payback of the exceptional government intervention or the achievement of objectives set in the restructuring plan.

The investment firm should ensure that a bonus pool or the vesting and paying out of variable remuneration do not pose damage the timely building up of its capital base and a decrease in its dependence on exceptional government intervention.

Competent authorities should monitor that the investment firm complies with the conditions of Article 31 of Directive (EU) 2019/2034 and may set a maximum percentage of the net revenue that can be used for the pay-out of variable remuneration.