On 13 June 2014, the European Banking Authority (“EBA”) published a report on remuneration practices across the EU. The report, which is based on data collected on a consolidated basis from 2010 to 2012, illustrates the diversity in quantity and structure of pay across the EU financial sector. The report highlights that practices vary on the deferral of variable remuneration depending on the application of the proportionality principle by Member States and individual firms. The EBA is analyzing an emerging practice on the use of “position or role-based allowances” and intends to provide guidance criteria on the allocation of those elements of pay to either fixed or variable remuneration because it is concerned that the practice may lead to the cap between variable and fixed remuneration being thwarted.

The EBA report is available at:

http://www.eba.europa.eu/documents/10180/534414/EBA+Remuneration+bench marking+report+2010+to+2012.pdf.