121. The total variable remuneration awarded by an investment firm must not limit the ability of …

The total variable remuneration awarded by an investment firm must not limit the ability of the investment firm to maintain or restore a sound capital base in the long term and should consider the interests of shareholders and owners, investors and other stakeholders. Variable remuneration should not be awarded or paid out when the effect would be that the capital base of the investment firm would no longer be sound. The investment firm should consider these requirements, the results from the internal capital adequacy assessment process, its multi-year capital planning and recommendations on distributions by competent authorities and European Supervisory Authorities, when determining:

• a. the overall pool of variable remuneration that can be awarded for that year; and
• b. the amount of variable remuneration that will be paid out or will be vesting in that year.

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/