14.1.3 Specific criteria for control functions

232. Where control functions’ staff receive variable remuneration, it should be appraised and the variable part of remuneration determined separately from the business units they control, including the performance which results from business decisions (e.g. new product approval) where the control function is involved.

233.The criteria used for assessing the performance and risks should predominantly be based on the internal control functions’ objectives. Variable remuneration for control functions should predominantly follow from control objectives, e.g. the Tier 1 ratio, the non-performing loan ratio, the non-performing loan recovery rate or audit findings. Their variable remuneration may be based also to some extent on the performance of the institution as a whole. The institution should consider setting a significantly lower ratio between the variable and fixed components of remuneration for control functions compared to the business units they control.

234.If the head of the risk management function (Chief Risk Officer or CRO) is also a member of the management body, the principles set out in paragraphs 232 and 233 should also apply to the CRO’s remuneration.

1. Ülevaade

1.1 Viited

1.2 Tuvastatud nõuded

1.3 Seotud standardid

2. Tuvastatud nõuded

3. Seotud standardid

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