Background:

CRD  IV imposes a “bonus cap” to 100% of fixed or  200% with shareholder approval Member states can lower this higher limit, including to zero, eg Netherlands has limited it to 20%.

Benchmarking Report:

The EBA  has published a report which benchmarks firms remuneration practices concerning increasing the maximum ratio above 100% as at December 2014. The report shows:

  • All member states, except Belgium, Slovenia, Sweden and Romania, have implemented the possibility for institutions to increase the maximum ratio with shareholders' approval. However, firms in only 15 member states have made use of this. In 8 member states, no institution has yet increased the maximum ratio;
  • In those member states which allow the higher ratio, not all firms use the full 200%. Where firms use the full 200%, firms allowing 100% will also be found;
  • Most staff that can receive a higher ratio are in investment banking.