249. Without prejudice to the application of waivers under Article 32(4) of Directive (EU) …

Without prejudice to the application of waivers under Article 32(4) of Directive (EU) 2019/2034, investment firms should pay the variable remuneration partly upfront and partly deferred and, where required, in instruments and cash in accordance with Article 32 of Directive (EU) 2019/2033. Where a high amount of variable remuneration is paid in instruments, investment firms should consider if the risk alignment with the risk profile of the investment firm or the assets it manages would be improved if a combination of different instruments were awarded. Before paying out the deferred part of cash or the vesting of deferred instruments, a reassessment of the performance and, if necessary, an ex post risk adjustment should be applied to align variable remuneration to additional risks that have been identified or materialised after the award. This applies also where multi-year accrual periods are used.

1. Overview

1.1 References

• Article 32 4.

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/