19. Variable remuneration

317.Competent authorities should review:

• a. the performance and risk assessment and alignment process and the appropriateness of its time horizon;
• b. the appropriate combination of quantitative and qualitative criteria used to measure performance and risk and determine whether:
• ii. the criteria are aligned with the institution’s objectives;
• iii. they are realistic compared with the individual’s, business unit’s and institution’s objectives;
• iv. the individual criteria are appropriate to measure the individual’s performance;
• c. whether internal control functions, in particular the risk management function, are appropriately involved in the determination of ex ante risk adjustments;
• d. the appropriateness of the top-down and bottom-up approaches used to calculate the bonus pool;
• e. whether the institution is complying with the limitation of the ratio between the variable and fixed components of the total remuneration and the capping of its overall bonus pool to the limits set by Articles 141 and 141b of Directive 2013/36/EU and by Article 16a of Directive 2014/59/EU;
• f. the time horizon of the applicable deferral and retention schedules and how it relates to the business cycle of an institution;
• g. the combination of shares or equivalent ownership interests or share-linked and equivalent non-cash instruments that the institution uses to meet the 50% threshold referred to in Article 94(1)(l) of Directive 2013/36/EU to ensure that it adequately reflects the long-term interests of the institution;
• h. whether explicit ex post risk adjustments are based on the performance assessment of the staff member, business unit and institution and the criteria used to measure the performance of the staff member;
• i. whether malus and clawback have been appropriately applied to both the cash and equity part of the deferred and non-deferred variable remuneration and the criteria on which malus and clawback rely;
• j. that variable remuneration is not paid through vehicles or methods which aim at or effectively lead to non-compliance with remuneration requirements as specified in these Guidelines for identified staff or, where applicable, for all staff.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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