The deadline for EEA states to implement the various amendments to the Capital Requirements Directive in relation to bankers' remuneration (CRD 3) passed on 1 January 2011.
CRD 3 requires that for certain staff, at least 40 per cent of variable remuneration should be deferred for at least three to five years. In the case of particularly high remuneration, at least 60 per cent should be deferred. The criteria for determining deferral length varies between countries and firms operating across the EEA will need to be mindful of this. In all cases, firms will need to review remuneration policies, employment contracts, incentive arrangements and current practice in order to evaluate compliance and make any necessary changes.
Moreover, firms must be alert to the risks of compliance, such as the potential breach of existing employment rights by amending terms and conditions to conform with new remuneration rules. Helpfully, CRD 3 is stated as being "without prejudice to... general principles of national contract and labour law..." However, this caveat does not eliminate the risk of breach inherent in efforts to comply.
You can access our briefing on CRD 3 here.