17. Remuneration policies

308.Competent authorities should ensure, taking into account these guidelines, the EBA guidelines on the applicable notional discount rate and the EBA guidelines on the supervisory review process, that institutions comply with the requirements on remuneration policies set out in Directive 2013/36/EU, Regulation (EU) 575/2013 and the provisions of the RTS on identified staff, including that they have appropriate gender-neutral remuneration policies for all staff and for identified staff. Competent authorities should apply a risk-based approach when supervising the remuneration policies of institutions.

309.Without prejudice to other supervisory and disciplinary measures and sanctions, competent authorities should require institutions to take adequate actions in order to remedy any identified deficiencies. Where institutions do not comply with such requests, appropriate supervisory measures should be taken.

310.Competent authorities should ensure that institutions align their remuneration policy and practices to the business strategy and the long-term interest of the institution, taking into account its business and risk strategy, corporate culture and values, and risk profile.

311. Competent authorities should ensure that institutions’ remuneration policies, practices and processes are appropriate and review, in addition to the reviews required under the EBA guidelines on the supervisory review process, in particular:

• a. the governance arrangements and processes for designing and monitoring the remuneration policy;
• b. that an appropriate exchange of information among all internal bodies and functions, including within the group, involved in designing, executing and monitoring the remuneration policy is carried out;
• c. the process developed for conducting the annual review of the remuneration policies and practices and its main results, including whether the remuneration policy is gender neutral;
• d. that a remuneration committee with sufficient powers and resources to perform its functions is established where required;
• e. the impact of the remuneration policy and practices on the conduct of business, including advising and selling of products to different customer groups;
• f. that remuneration policies are taken into account within the internal capital adequacy assessment process and the liquidity planning and vice versa.

312.As part of the above reviews, competent authorities should in particular, but not only :

• a. use the minutes of the deliberation of the supervisory function on remuneration policies, in particular with respect to the results of the oversight of the institution’s remuneration system ’ s design and processes and the tasks conducted by the remuneration committee;
• b. use the minutes of the remuneration committee and other committees, including the risk committee, involved in the oversight of the remuneration system’s design and operation;
• c. hold meetings with members of the institution’s management body and other relevant functions.

313.Competent authorities should ensure that institutions supervised on a consolidated and sub-consolidated basis have established a remuneration policy at the group and sub-consolidated level, including – as far as required by the national implementation of Article 109(4) to (6) of Directive 2013/36/EU – subsidiaries which are not themselves subject to Directive 2013/36/EU, which is implemented consistently within the group, including for the purposes of the determination of identified staff.³⁶

314.Competent authorities should ensure that the institutions’ identification process :

• a. includes the qualitative and quantitative criteria set out in Article 92 of Directive 2013/36/EU and in the RTS on identified staff and where appropriate additional criteria defined by the institution;
• b. is applied appropriately on an individual, consolidated or sub-consolidated level; and
• c. ensures that requests for prior approval under the RTS on identified staff are processed in accordance with these guidelines.

315.Competent authorities should be satisfied with the overall outcome of the identification process and should assess if all staff members whose activities have or may have a material impact on the institution’s risk profile have been identified and that any exclusions of staff from the category of identified staff, where staff were only identified by the quantitative criteria under Article 92 of Directive 2013/36/EU and in the RTS, are well reasoned and that the requirements under Article 92 of Directive 2013/36/EU and the respective processes set out in these guidelines and the RTS have been complied with.

³⁶ Please also refer to the guidelines in paragraphs 74 and 75 of these guidelines.

1. Ülevaade

1.1 Viited

1.2 Tuvastatud nõuded

1.3 Seotud standardid

2. Tuvastatud nõuded

3. Seotud standardid

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