6. Additional specifications for remuneration data

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

• a. Where the number of staff is to be submitted in terms of the headcount, the number of natural persons should be entered, independently of the number of working hours on which their contract is based or changes in the number of staff during the year and taking into account the total amounts of remuneration awarded for the year.
• b. Where the number of staff is to be submitted in terms of the full-time equivalent, the number 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 full-time contract).

For the purposes of Annexes II and III, identified staff are the staff specified under point (a) where investment firms submit data on an individual basis, and under point (b) where investment firms submit data on a consolidated basis in accordance with Article 7 of Regulation (EU) 2019/2033, whereby the members of the management body of subsidiaries are reported under the business areas rather than under the function ‘management body’.

• a. Identified staff are the staff whose professional activities have a material impact on the investment firm ’ s risk profile or on the assets that it manages on an individual basis.

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

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• b. Identified staff are the aggregation of:
• i. identified staff in investment firms that are in the prudential scope of consolidation and are themselves subject to the remuneration provisions under Articles 30 and 32 of Directive (EU) 2019/2034, independent of the fact that the staff members are identified on an individual or a consolidated level, and
• ii. identified staff in other entities to which Articles 30 and 32 of Directive (EU) 2019/2034 apply only on a consolidated basis, with regard to the staff members whose professional activities have a material impact on the investment firm ’ s risk profile or on the assets that it manages on a consolidated basis.

Unless otherwise specified in the Annexes to these Guidelines, information on remuneration awarded for the financial year should comprise the fixed and variable gross remuneration awarded for that year, i.e. the financial year preceding the year of submission of the information.

The allocation of submitted amounts to the fixed and variable part of remuneration should be made in line with Section 7 of the EBA Guidelines on sound remuneration policies under Directive (EU) 2019/2034.³

Taxable non-monetary items of remuneration should be included with their monetary equivalent and be included as ‘ other forms ’ of remuneration.

Only the amounts of variable remuneration awarded for the reported financial year that have been deferred should be reported under the position ‘of which: deferred’ in Annex II. Deferred variable remuneration for previous periods should be submitted under the additional information in Annex II.

Severance payments, guaranteed variable remuneration and discretionary pension benefits should be included in the amount of total variable remuneration in Annex II and in the appropriate subcategory. The amounts should also be added to the specific rows in the section on additional information in Annex II.

Where identified staff left the investment firm 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 when the contract has already ended before the end of the financial year. Identified staff who joined the investment firm 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.

For the purposes of the tables in Annex I and in Annex III, staff should be classified under the function or business area in which they carry out the predominant part of their business activities.

3 The Guidelines are published at: https://www.eba.europa.eu/regulation-and-policy/investment-firms/guidelines-remuneration-policies-investment-firms

13 The full amount of remuneration awarded to that staff member within the group or investment firm should be included under this function or business area.

For the allocation of staff to business areas and categories of staff, investment firms 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. Investment firms should allocate members of management bodies of subsidiaries in Annex II to the ‘ other identified staff ’ category and in Annex I and Annex III to the respective business areas.
• b. ‘ Management body (MB) management function ’ should encompass the members of the management body at the highest consolidated level who are responsible for its management functions (i.e. executive directors). Investment firms should allocate members of management bodies of subsidiaries in Annex II to the ‘other senior management’ category and in Annex I and III to the respective business areas.
• c. ‘Other senior management’ is the staff defined in point (27) of Article 3(1) of Directive (EU) 2019/2034 other than members of the management body at the highest consolidated level.
• d. Staff that are neither ‘other senior management’ nor a me mber of the management body should be reported under ‘other identified staff’.
• e. ‘ Dealing on own account, underwriting and placing of instruments ’ should include the services and activities under points (3), (6) and (7) of Annex I, Section A of Directive 2014/65/EU⁴ .
• f. ‘ Investment advice and order execution ’ should include the services and activities under points (1), (2) and (5) of Annex I, Section A of Directive 2014/65/EU.
• g. ‘ Portfolio management ’ should include the services and activities under point (4) of Annex I, Section A of Directive 2014/65/EU and the staff that manage assets in subsidiaries that are Undertakings for Collective Investments in Transferable Securities (UCITS) or Alternative Investment Fund Managers (AIFMs) that are subject to the application of Articles 30 and 32 of Directive (EU) 2019/2034 on a consolidated basis.
• h. ‘ Operation of MTF/OTF ’ should include the services and activities under points (8) and (9) of Annex I, Section A of Directive 2014/65/EU.
• i. ‘ Independent control functions ’ should include only staff active in the independent risk management, compliance and internal audit functions as described in the EBA’s Guidelines on internal governance.⁵

4 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU 5 EBA GL on internal governance under Directive (EU) 2019/2024, Section 15

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• j. ‘ All other staff ’ should include staff that are not included in points (a) to (i).

Variable remuneration awarded based on multi-year accrual periods that do not revolve on an annual basis, i.e. where investment firms do not start a new multi-year accrual period every year, should be fully allocated, for the purposes of Annex II, to the total variable remuneration for the financial year in which it was awarded, without consideration of the point in time when the variable remuneration is effectively paid or the length of the performance period. The amount of that variable remuneration should also be included in the additional information in Annex II.

Investment firms not falling under Article 32(4)(a) of Directive (EU) 2019/2034 should submit in Annex II the fixed and variable remuneration of identified staff to which the derogation under Article 32(4)(b) of that Directive applies.