The Committee of European Banking Supervisors (CEBS) has published a consultation paper which contains draft high-level principles on remuneration policies. These principles address key aspects of a well functioning remuneration policy and thus support the sound operations of banking institutions.
The draft principles cover remuneration policies applying throughout an organisation rather than focusing exclusively on executive pay or severance pay. The draft principles focus on key aspects of the remuneration policy, in particular:
- The alignment of company and individual objectives.
- Transparency towards internal and external stakeholders.
- Governance with respect to oversight and decision-making.
- Performance measurement.
- Form of remuneration.
Comments are invited by 3 April 2009. CEBS will be holding a public hearing at its premises on 20 March 2009.
View Draft high-level principles on remuneration policies, 6 March 2009