The Committee of European Banking Supervisors (CEBS) has published a finalised set of principles for remuneration policies following a one-month public consultation period and a public hearing.
The principles address key aspects of well functioning remuneration policies and thus support the sound operation of banking institutions.
The scope of the principles covers remuneration policies applying throughout an organisation rather than focusing exclusively on executive pay or severance pay. It focuses on key aspects of remuneration policies, and in particular:
- alignment of company and individual objectives;
- transparency towards internal and external stakeholders;
- governance with respect to oversight and decision-making;
- performance measurement; and
- forms of remuneration.