Regulatory Alerts2014-05-14
Remuneration Policy in a Banking Corporation
The Supervisor of Banks issues this directive to mandate that banking corporations align remuneration policies with risk management and long-term goals to prevent excessive risk-taking. The document requires boards to establish robust governance structures, including a remuneration committee, and defines key employees subject to strict variable pay rules. It imposes specific constraints on variable remuneration, such as mandatory deferral, clawback provisions, and caps, while ensuring independence for risk and control functions.
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