133. When the award of variable remuneration, including long term incentive plans (LTIPs), is based …

When the award of variable remuneration, including long term incentive plans (LTIPs), is based on past performance of at least one year, but also depends on future performance conditions, the following should apply:

• a. investment firms should clearly set out to staff the additional performance conditions that have to be met after the award for the variable remuneration to vest;
• b. investment firms should assess before the vesting of variable remuneration that the conditions for its vesting have been met;
• c. the additional forward-looking performance conditions should be set for a predefined performance period of at least one year;
• d. when the additional forward looking performance conditions have not been met, up to 100% of the variable remuneration awarded under those conditions should be subject to malus arrangements;
• e. the deferral period should end at the earliest one year after the last performance condition has been assessed; all other provisions regarding the deferral of variable remuneration for identified staff set out in section 15 apply in the same way as to variable remuneration that is exclusively based on performance previous to its award;
• f. for the calculation of the ratio between the variable and the fixed component of the total remuneration, the total amount of the variable remuneration awarded should be taken into account in the financial year for which the variable remuneration, including LTIPs, was awarded. This should also apply when the past performance was assessed in a multi-year accrual period.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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