Regulatory Alerts2018-11-13
Remuneration Policy in a Banking Corporation
The Bank of Israel amended Proper Conduct of Banking Business Directive no. 301A to permit banking corporations to grant retention bonuses to key employees who are not officeholders. This regulatory change addresses the need to recruit and retain critical technology staff by creating an exception to the general prohibition on variable remuneration not stipulated on performance. The amendment, effective upon publication, adds a specific subsection to Section 15(a) and includes updated implementation FAQs.
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