Length of the vesting period (n)

Pro rata vesting of the portion of variable remuneration of EUR 37 500 paid in instruments deferred for six years implies that every year EUR 6 250 vests. Hence, in the formula for the discount rate the length of the vesting period is: n=1 for the EUR 6 250 vesting after the first year, n=2 for the portion vesting after two years, n=3 for the portion vesting after three years, and so on until n=6.

The discounted variable remuneration for the above example 2 is calculated as follows:

In this example, EUR 37 500, which represents 25% of the total variable remuneration is paid in instruments deferred for at least five years and can be discounted. The discounted value of the amount of EUR 37 500 of variable remuneration deferred for

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/