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Banking Rule Book
Text applicable on 1 Jan 2027Consolidated version of 1 Jan 2027Future dateUnofficial text · authentic on EBA (PDF) (opens in a new tab)

GL-SREP paragraph 84 — as applicable on 1 Jan 2027 (version of 1 Jan 2027)

5.4

Remuneration policies and practices

84.

In assessing the institution’s remuneration policies and practices, competent authorities should assess institution’s compliance with Articles 74, 92, 94 of Directive 2013/36/EU, Delegated Regulation (EU) 2021/923 and the EBA Guidelines on sound remuneration policies(29). In this context, competent authorities should consider inter alia whether:

a.

the institution has implemented appropriate and gender-neutral remuneration policies and practices for all staff, approved, regularly reviewed and overseen by the management body, and whether these policies adhere to the applicable legal and regulatory requirements;

b.

the internal control functions are involved in the design of the remuneration policies and verify their proper review, monitoring and update;

c.

the remuneration policies and practices promote sound and effective risk management, including by taking into consideration the institution’s risk appetite in terms of ESG risks, and are consistent with the institution’s business and risk strategies, risk culture and corporate values, the long-term interests of the institution and conflicts of interest measures, and do not provide incentives for excessive risk-taking;

d.

the institution has correctly identified all its staff whose activities have a material impact on its risk profile in accordance with the applicable legal and regulatory requirements;

e.

the ratio of variable and fixed remuneration is appropriate, and the variable remuneration component does not exceed 100% of the fixed remuneration component (or 200% with shareholders’ approval) for the identified staff;

f.

the institution has made a proper allocation of the fixed and variable components, with no use of vehicles or practices to circumvent remuneration requirements;

g.

variable remuneration is based on performance (considering both financial and non-financial criteria) and whether the institution adheres to related legal and regulatory requirements on deferral and retention periods, pay-out in instruments, and clawback and malus clauses.