Regulatory Alerts2022-04-10
Added · Updated
Remuneration Policy in a Banking Corporation
The directive mandates that banking corporations establish remuneration policies aligned with risk management and long-term goals, applying to all employees and senior officeholders with specific thresholds for key employees. It requires the Board of Directors to approve policies every three years and establishes a remuneration committee to oversee implementation. The rules enforce risk-adjusted variable remuneration, including mandatory deferrals, clawbacks for up to five years, and prohibitions on personal hedging. Additionally, it restricts the performance metrics for risk, control, and audit staff to prevent conflicts of interest and ensures their compensation is independent of business unit results.
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