Response to consultation on Guidelines on sound remuneration policies
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Therefore, allowances should be available to banks remenuration policies up to 100% of fixed salary. It is a good risk management policy.
Q 9: Are the requirements regarding allowances appropriate and sufficiently clear?
Not providing institutions with the ability to pay variable allowances is ridiculous. Unlike fixed pay allowances can be easily taen away from staff. Where performance is lacking or behaviours of staff are not appropriate the removal of an allowance from that person's following year remuneration is a very strong measure. Much more so than failure to pay a bonus. This is because you are taking away something the person is currently receiving rather than not paying something they might othewise have recieved. Very different.Therefore, allowances should be available to banks remenuration policies up to 100% of fixed salary. It is a good risk management policy.