HR Remuneration (CRD III)

The EU’s newly adopted Capital Requirements Directive (CRD III) is aimed at strengthening remuneration governance and improving remuneration disclosures and structures to reward long-term performance and avoid excessive risk taking.

Accompanying the CRD III, the Committee of European Banking Supervisors (CEBS) just issued its “Guidelines on Remuneration Policies and Practices”. These guidelines will introduce striking changes to the deferral rules applying to bonuses, namely a 30% limit on the amount of bonuses able to be paid in cash.

In the wake of these sweeping changes, your upcoming shareholder meetings are likely to include some important questions about the CRD III, such as

• What are the do’s and don’ts of CRD III?
• What should the agenda of the Remuneration Committee look like?
• How do you link remuneration to performance and risk? 
• Are sign-on bonuses still possible ?

So, how do you know if you reward policy is adequately supporting your strategic goals?

How PwC can help

Our experience lies in helping financial services organisations review and amend their remuneration policies in order to comply with developing regulatory requirements both in Belgium and internationally.

We will help you achieve the required level of compliance, while aligning our advice with emerging market practice and managing any commercial risks.

Learn more about CRD III in our flyer: Capital Requirements Directive introduces new remuneration code (PDF).