The European Banking Authority (EBA) published its report on high earners for 2019. The report analyzes the data for 2019, which the competent authorities provided, and compares it to the 2018 data. The analysis shows that, in 2019, 4,963 individuals working for EU banks received a remuneration of more than EUR 1 million, which is mostly the same as in 2018. The report has been developed in accordance with Article 75(3) of the Capital Requirements Directive (CRD).
In 2019, the largest share of high earners of 3,519 (71% of the total number of high earners) was located in the UK. Most of the member states across EU registered a slight increase in the number of high earners, particularly Germany, France, and Italy. The increase of high earners resulted mostly from the impact of the relocation of staff from the UK to EU27 as part of Brexit preparations. In addition, for some institutions, the overall good financial results, particularly in corporate banking, and the ongoing restructuring and consolidations, which led to higher than usual severance payments, played an important role in the overall increase of high earners. The average ratio between the variable and fixed remuneration for high earners decreased from 139% in 2018 to 129% in 2019. In the business area of asset management, the average ratio of variable to fixed remuneration decreased from 378% in 2018 to 339% in 2019, still far exceeding the maximum ratio of 200%. This is mainly due to differences in the national implementation of CRD, that in many cases allows for waivers of some provisions when certain criteria are met. Following the amendments of the CRD, which started to apply as of the end of 2020, a higher degree of harmonization is expected.
The report includes data reported by UK institutions for high earners, as during the transitional period, UK institutions continued reporting data on high earners at EU consolidation level, covering all subsidiaries and branches established in EU member states. EBA will continue to benchmark remuneration trends biannually (e.g. for the performance years 2019 and 2020, a benchmarking exercise will take place in 2021 and will be published in the first quarter 2022). In addition, EBA will continue to publish data on high earners annually to closely monitor and evaluate developments in this area. The next report based on 2020 data will no longer include data for the UK. Institutions’ preparation for the UK withdrawal from the EU has affected the distribution of high earners across the EU with a number of high earners relocating from the UK to the EU.
Keywords: Europe, EU, Banking, High Earners Data, Remuneration Practices, CRD IV, Operational Risk, Benchmarking Exercise, Governance, EBA
Previous ArticleDNB Publishes Multiple Regulatory Updates in August 2021
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.