The European Banking Authority (EBA) has published a report benchmarking credit institutions' remuneration practices concerning the use of the possibility to increase the maximum ratio between variable and fixed remuneration up to 200%. In the absence of shareholder approval, the Capital Requirements Directive (CRDIV) limits the ratio to 100%. The report shows that all but 6 Member States have allowed for the possibility to increase the ratio to 200% (with shareholder approval) but only institutions in 15 Member States have made use of this possibility. Institutions with approved higher ratios account for more than half of the market share of the banking system. Most of the identified staff that can receive a higher ratio work in investment banking.
The EBA and Competent Authorities will continue to monitor the development with regard to the approval of higher ratios and will take into account its findings in the review of the remuneration provisions mandated under Article 161 of the CRDIV.