Date: 12th March 2019

Yesterday, the European Banking Authority (EBA) has published its report on high earners for 2017, available for the first time in a user-friendly format on the remuneration of “staff whose professional activities have a material impact on” the risk profile of the financial institution. The Capital Requirements Directive (CRD IV) sets out principles for sound remuneration policies for management staff, employees taking a risk or engaged in control functions or who earn in the same bracket as the aforementioned (Articles 92-95 CRD IV). These provisions are accompanied by a set of Guidelines laid down by the EBA for the implementation of these rules, whose purpose is to control risk-taking and conflicts of interest in managing the financial institution.

The data shows that the number of high earners in EU banks receiving remuneration of more than €1 million slightly increased from 4 597 in 2016 to 4 859 in 2017, with the highest concentration in the UK (73%). By contrast, the average ratio between the variable and fixed remuneration for high earners continuously fell from 118% in 2015 to 101.08% in 2017.

The report has been developed in line with the CRD IV, which mandates the EBA to collect such information from national competent authorities. A report looking at 2018 figure will be published by the beginning of 2020 and will be combined with the benchmarking of remuneration trends for 2017 and 2018.

Full article is available on EBA.