Regulatory Alerts2024-01-17 | NBB_2024_02Added · Updated
NBB cross-sectional analysis of remuneration policies and practices of credit institutions – findings and recommendations
The National Bank of Belgium requires credit institutions and large stockbroking firms to immediately implement five specific recommendations regarding remuneration policies. These mandates include reassessing severance payments to ensure they comply with statutory variable remuneration limits, strictly adhering to EBA guidelines for classifying allowances and sign-on bonuses as fixed remuneration, and providing detailed methodologies for assessing ESG and risk culture performance indicators. Institutions must also develop concrete measures to monitor the gender pay gap and increase the granularity of group remuneration policies to centralize all local and sectoral specificities. These requirements apply to bonuses paid in 2024 for the 2023 performance year.