The European Commission has adopted two Recommendations on remuneration in the financial sector.
The first recommendation relates to the rules for the remuneration of directors of listed companies; the second relates to the remuneration policy for risk-taking staff in the financial sector.
In the Recommendations, member states are asked to take a number of measures in various areas (such as structure of remuneration policy, governance, supervision and disclosure). The Commission intends to bring remuneration policies within the scope of prudential oversight. To this end it has currently presented legislative proposals to revise the Banking Directive (Bankenrichtlijn) to ensure that risk assessment processes adequately cover the risk inherent in trading books, securitisation positions and remuneration policies of banks.