CRD 4: EBA reports on application of proportionality to remuneration requirements

CRD 4: EBA reports on application of proportionality to remuneration requirements

The EBA has published a report on the application of the proportionality principle to the remuneration provisions laid down in CRD 4, responding to a request for advice from the EU Commission.

The report follows the EBA's December 2015 opinion on the application of proportionality, which suggested a harmonised and consistent proportionate application of remuneration requirements across the EU, taking into account compliance costs. In particular, the opinion recommended that CRD 4 be amended to allow for waivers regarding the application of deferral arrangements and the pay out in instruments for small and non-complex institutions and for identified staff that receive only a low amount of variable remuneration when specific criteria are met.

The report provides a detailed overview by Member State on the applicable framework regarding the principle of proportionality, analyses the number of institutions and staff currently benefitting from waivers in the area of remuneration and provides estimates on the number of institutions and staff that could benefit from future waivers if the amendment proposed in the first opinion were adopted.