15.5 Minimum portion of instruments and their distribution over time

Where applicable, the requirement to pay, in accordance with Article 32(1)(j) of Directive (EU) 2019/2034, at a minimum 50% of any variable remuneration in instruments. Investment firms should apply this requirement either equally to the non-deferred and the deferred part or choose to award a higher portion of the deferred part of remuneration in instruments, as long as in total the minimum requirement of 50% is met.

Investment firms should prioritise the use of instruments rather than award variable remuneration in cash. Investment firms should set the percentage which is awarded in instruments at or above 50%. Where investment firms award a higher portion than 50% of the variable remuneration in instruments, they should prioritise a higher share of instruments within the deferred portion of the variable remuneration component.

The ratio of variable remuneration that is paid out in instruments should be calculated as the quotient between the amount of variable remuneration awarded in instruments and the sum of the variable remuneration awarded in cash, instruments and in any other form. All amounts should be valued at the point of award unless stated otherwise in these guidelines.