Regulatory Alerts2014-05-29 | CD-SIBOIF-833-1-MAY9-2014Added · Updated
Amendment to Articles 1, 2, and 4 of the Standard on the Payment of Bonuses in Financial Institutions
The Superintendence of Banks and Other Financial Institutions amended Articles 1, 2, and 4 of its Standard on the Payment of Bonuses to prohibit bonus payments to board members of financial institutions. The regulation restricts bonus eligibility exclusively to workers maintaining a labor relationship, specifically defining eligible positions as chief executives and those at the next hierarchical level while excluding branch managers and risk or compliance staff. The Board of Directors must approve worker bonuses and report on payments, while the standard mandates performance-based criteria, risk adjustments, and deferral policies for eligible employees.
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