Start Date: 06/03/2009 | Deadline: 03/04/2009
The Committee of European Banking Supervisors (CEBS) today published its principles on remuneration policy and invites interested parties to comment on the set of guidelines. These principles address key aspects of a well functioning remuneration policy and thus support the sound operations of banking institutions. The consultation will last for one month and will end on Friday, the 3rd April 2009. The shortened consultation period is caused by external deadlines. Please send any comments to CP23@c-ebs.org before that date. Comments received will be published on CEBS's website unless respondents explicitly request otherwise.
The principles will be integrated into the guidelines on Internal Governance (Guidelines on the Application of the Supervisory Review Process under Pillar 2 - CP03 revised, 25 January 2006) . The scope of the principles covers remuneration policies applying throughout an organisation rather than focusing exclusively on executive pay or severance pay. It focuses on key aspects of the remuneration policy, and in particular:
In drafting these principles, CEBS coordinated its work with other relevant international fora working on the topic of remuneration, in particular the FSF.
The implementation of these guidelines by the banks is expected by the end of Q3 '09 in order for supervisors to make a first assessment of the institutions' progress in transposing the principles. CEBS will further consider implementation aspects of these guidelines in a Pillar 2 context in the coming months.
CEBS will also hold a public hearing on the 20 March 2009 from 1.00pm – 4.30pm GMT at the CEBS premises, in London.