5. Additional specifications for remuneration data

Regarding the submission of tables REM1, REM2, REM3, REM4 and REM5, institutions should take into account the instructions set out in ANNEX XXXIV of Commission Implementing Regulation (EU) 2021/637 in addition to this section, as well as the validation rules specified in Annex VII.

The number of staff should be submitted as determined at the end of the financial year (i.e. staff who left during the financial year should not be counted, while staff who were recruited within the financial year should be counted, taking into account their contractual working time arrangements).

• a. Where the number of staff members is to be submitted in terms of the headcount, the number of natural persons should be entered, irrespective of the number of working hours on which their contract is based or changes to the number of staff during the year and taking into account the total amounts of remuneration awarded for the year.
• b. Where the numbers are to be submitted in terms of the full-time equivalent, the numbers should be based on the percentage of time that an individual staff member is employed compared to a full-time contract (e.g. 0.5 would be reported for a staff member who is working 50% of the time of a full-time contract).

4 The EBA provides a link to the information on its website together with these Guidelines; the exchange rate can also be accessed at http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm

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When submitting tables REM1, REM2, REM3, REM4 and REM5 of Commission Implementing Regulation (EU) 2021/637, and Annexes II and III of these Guidelines, identified staff should be understood as those members of staff who have a material impact on the institutions’ risk profile s as identified in all institutions and other subsidiaries on a consolidated basis and to whom the remuneration provisions under Articles 92 and 94 of Directive 2013/36/EU apply, whereby the members of the management body of subsidiaries are reported under the business areas rather than under the ‘management body’ function. ‘ Identified staff ’ is the aggregation of:

• a. identified staff in institutions that fall under the prudential scope of consolidation irrespective of whether they are identified at the individual or the consolidated level;
• b. in accordance with Article 109(5) of Directive 2013/36/EU, staff members that are mandated to perform activities that have a direct material impact on the risk profile or the business of the institutions within subsidiaries that are an asset management company or an undertaking that provides the investment services and activities listed in points (2), (3), (4), (6) and (7) of Section A of Annex I to Directive 2014/65/EU;
• c. identified staff in subsidiaries to whom Member States apply Articles 92, 94 and 95 on a consolidated basis in accordance with Article 109(6) of Directive 2013/36/EU, where the staff members have a material impact on the institutions ’ risk profile at a consolidated level; and
• d. identified staff in other entities to whom Articles 92 and 94 of Directive 2013/36/EU apply only on a consolidated basis, i.e. entities that are neither institutions nor subsidiaries that are subject to a specific remuneration framework in accordance with Article 109(4) of Directive 2013/36/EU with regard to those staff members whose professional activities have a material impact on the institutions ’ risk profile at a consolidated level.

Information on remuneration awarded for the financial year should comprise the fixed and variable gross remuneration awarded for the whole financial year preceding the year of the remuneration data ’s submission.

When submitting table REM1 of Commission Implementing Regulation (EU) 2021/637 in accordance with these Guidelines, taxable non-monetary items of remuneration should be included with their monetary equivalent and should be included as ‘ other forms ’ in that table.

When submitting tables REM1 and REM3 of Commission Implementing Regulation (EU) 2021/637 in accordance with these Guidelines, only the amounts of variable remuneration awarded for the submitted financial year that have been deferred should be included under the item ‘of which: deferred ’ in table REM1, while deferred variable remuneration for previous periods should be included separately in line with the instructions for table REM3.

Severance payments to identified staff should be included in the amount of variable remuneration in table REM1 of Commission Implementing Regulation (EU) 2021/637, in addition in the specific rows in table REM2 and, where deferral is applied, in table REM3 of that Regulation.

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Where identified staff left the institution before the end of the financial year, the remuneration awarded for the financial year, including severance payments and all other forms of remuneration, should be submitted, while the staff member should not be counted towards the number of identified staff submitted where the contract has already ended before the end of the financial year. Identified staff who joined the institution during the financial year should be included in the number of identified staff, taking into account their contractual working time arrangements (e.g. staff working on a full-time basis who joined during the financial year would always be counted with ‘1’ at the end of the financial year) and all remuneration awarded to those identified staff for the financial year should be submitted.

Guaranteed variable remuneration should be included in the variable remuneration in table REM1 of Commission Implementing Regulation (EU) 2021/637, and in addition be included in table REM2 and, where deferral is applied, in table REM3 of that Regulation.

When submitting Annex I and table REM 5 of Commission Implementing Regulation (EU) 2021/637, staff should be classified under the function or business area where they carry out the predominant part of their business activities. The full amount of remuneration awarded to that staff member within the group or institution should be included under this function or business area.

For the allocation of staff to business areas, institutions should consider their internal organisation and the following:

• a. ‘ Management body (MB) supervisory function ’ should encompass the members of the management body at the highest level of consolidation acting in the role of overseeing and monitoring management decision-making (i.e. non-executive directors), as specified in the instructions to table REM1 column letter (a) of Commission Implementing Regulation (EU) 2021/637. Institutions should allocate members of management bodies of subsidiaries to the relevant business area under points (c) to (i) where such a breakdown is provided, and otherwise to the ‘other identified staff’ category.
• b. ‘ Management body (MB) management function ’ should encompass the members of the management body at the highest consolidating level who are responsible for its management functions (i.e. executive directors) as specified in the instructions to table REM1 column letter (a) of Commission Implementing Regulation (EU) 2021/637. Institutions should allocate members of management bodies of subsidiaries to the relevant business area under points (c) to (i) where such a breakdown is provided, and otherwise to the ‘other senior management’ category.
• c. ‘ Investment banking ’ should include corporate finance, trading and sales as defined in Article 317, Table 2 of Regulation (EU) 575/2013, capital market-driven transactions as defined in Article 193(3) of Regulation (EU) 575/2013, and private equity.
• d. ‘ Retail banking ’ should include the institution ’ s total lending activity (to individuals and enterprises).
• e. ‘ Asset management ’ should include asset management within:

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• i. the institution that is included in the sample;
• ii. subsidiaries that are institutions, including investment firms having regard to Article 1(2) or (5) of Regulation (EU) 2019/2033; and
• iii. subsidiaries that are investment firms, undertakings for collective investment in transferable securities (UCITS), alternative investment fund managers (AIFM) or investment firms that are subject to the application of Articles 92 and 94 of Directive 2013/36/EU on a consolidated basis following the application of Article 109 (5) or (6) of this Directive.
• f. ‘ Corporate functions ’ should include staff in all functions that have responsibilities for the whole institution at the consolidated level and for subsidiaries with such functions at the individual level, e.g. human resources and information technology.
• g. ‘ Independent control functions ’ should include only staff active in the independent risk management, compliance and internal audit functions as described in Section 19 of the EBA guidelines on internal governance under Directive 2013/36/EU.
• h. For Annex I , ‘s taff in subsidiaries subject to a specific remuneration framework ’ should be understood as including all staff who are employed by a subsidiary which is an investment firm, UCITS or AIFM that is subject to a specific remuneration framework and not subject to the application of the remuneration requirements on a consolidated basis as set out in Article 109 of Directive 2013/36/EU.
• i. ‘ All other staff ’ should include staff and members of the management body of subsidiaries, other than investment firms, UCITS and AIFM, that cannot be allocated to the categories under (a) to (h).