Regulatory Alerts2012-08-08
Order ECC/1762/2012 of 3 August developing Article 5 of Royal Decree-Law 2/2012 on remuneration limits for entities receiving public financial support
The Spanish Ministry of Economy and Competitiveness issued Order ECC/1762/2012 to implement remuneration caps for executives and administrators of credit entities receiving public financial support from the Bank Restructuring and Orderly Resolution Fund (FROB). The order establishes strict limits on fixed and variable pay, prohibits excessive termination indemnities, and mandates that these restrictions apply to the entire corporate group to prevent circumvention. Exemptions or modifications to these limits are permitted only under specific conditions, such as entity integration or competitive divestiture, subject to Bank of Spain proposals and Ministerial approval.
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