Structures juridiques

normes de droit rémunération Structures juridiques

Proposition de nouvelle règle sur la Banker Incentive Compensation

Le National Credit Union Administration est devenu la première des six Agences à dévoiler une proposition de règle d’implantation de l’article 956 de la loi américaine Dodd-Frank (« Incentive-based Compensation Arrangements », 17 CFR Part 303, Release No.; File no., RIN). Commentaire à recevoir au plus tard pour le 22 juillet 2016 !

The OCC, Board, FDIC, FHFA, NCUA, and SEC (the Agencies) are seeking comment on a joint proposed rule (the proposed rule) to revise the proposed rule the Agencies published in the Federal Register on April 14, 2011, and to implement section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Section 956 generally requires that the Agencies jointly issue regulations or guidelines:

(1) prohibiting incentive-based payment arrangements that the Agencies determine encourage inappropriate risks by certain financial institutions by providing excessive compensation or that could lead to material financial loss; and

(2) requiring those financial institutions to disclose information concerning incentive-based compensation arrangements to the appropriate Federal regulator.

À la prochaine…

Ivan Tchotourian

rémunération Structures juridiques

Autorité bancaire européenne : rapport sur les pratiques de rémunération

L’Autorité bancaire européenne vient de publier son rapport sur les pratiques de rémunération : « Report on Benchmarking of Remuneration and High Earners 2014 ».

Quel bilan ?

The number of high-earners in the EU increased significantly, from 3 178 in 2013 to 3 865 in 2014, corresponding to a 21.6% increase on the previous year. The percentage of those high-earners who are identified staff, i.e. those who have a potential impact on institutions’ risk profiles, also increased significantly from 59% in 2013 to 87% in 2014; and the absolute number of identified staff went up from 34 060 in 2013 to 62 787 in 2014. of « high-earners » and benchmarking data for « identified staff ».

The introduction of the so-called ‘bonus cap’ – the limitation of the ratio between the variable and the fixed components of remuneration to 100% (200% with shareholders’ approval) which is applicable since 2014 – had an impact on remuneration practices; EU banking institutions shifted the remuneration for their identified staff towards the fixed component, bringing the ratio in line with what is prescribed by EU legislation. As a result, the average ratio between the variable and fixed salary paid to identified staff was 65.48% in 2014, down from 104.27% in 2013. At the same time, the average ratio between the variable and fixed remuneration paid to high earners dropped from 317% in 2013 to 127% in 2014.

The introduction of the bonus cap was found to have no significant effect on institutions’ financial stability and cost flexibility. For most institutions, the fixed salary of identified staff accounted for less than 1% of their own funds; and on average accounted for only 3.12% of the institutions’ administrative costs. This small increase in the fixed remuneration for identified staff is not material compared to the administrative costs of institutions.

À la prochaine…

Ivan Tchotourian