Banking Services
In the wake of the recent financial and economic crisis, national and international banking sectors find themselves facing a wealth of new legal requirements, not least in the area of compensation.
In Germany, the latest regulation – the Instituts-Vergütungsverordnung (InstitutsVergV) of October 2010 – specifies the application of the law of July 2010 for supervisory requirements on the compensation systems of institutions and insurance firms with respect to the level, structure, setting and transparency of compensation.
In Switzerland, the Financial Market Supervisory Authority (FINMA) in its circular of December 2009 sets minimum standards for the compensation schemes of financial institutions. According to the circular, overall compensation should be linked to the institution's risk policy and geared towards long-term economic performance.
In addition to new regulations on compensation, the banking sector is facing increased minimum capital requirements. The new equity standards formulated in September 2010 by the Basel Committee set higher capital adequacy levels for higher-risk business. And more regulations are still continuing to develop.
At hkp/// we understand the regulatory frameworks, in part due to our advisement of the experts who drew them up and know the impact of the regulations on corporate practice in specific countries. We leverage our deep knowledge of banking topics and processes, our years of experience developing and implementing compensation tools, and our expertise in financial and risk management as a basis for creating innovative, reliable and tailor-made solutions.
Our approach allows us to balance the interests of owners or investors to achieve an adequate return on investment and the interests of employees in receiving an adequate level of compensation. At the same time, our solutions meet the requirements of state-of-the-art risk management.
By analyzing the impact of legal requirements on the capital and liquidity structure of banks and the subsequent integration of these requirements into risk management processes, we also strengthen risk governance.
Our combination of HR management and compensation skills with our financial and risk expertise magnifies the effectiveness of our consulting services. Especially for banks, we offer a unique portfolio of services under one roof.
Your hkp/// Contacts
Germany
Dirk Filbert
Partner
Phone +49 69 175 363 366
Switzerland
Dr. Axel May
Senior Partner
Phone +41 44 560 33 33
Consulting Services
For banks and financial service companies, hkp/// advises the decision-makers and experts responsible for compensation issues with regards to supervisory and management board members, risk-takers as well as specialists and managers further down the organization. Our consulting services include:
- Assessing the appropriateness and sustainability of top-management compensation
- Designing and implementing compensation systems for controlling and executive bodies, risk-takers, specialists and managers, taking into account corporate strategy, relevant risks and legal requirements
- Choosing strategy-based financial and non-financial performance indicators and risk-specific behavioral competencies
- Developing share-based and equity-like compensation vehicles
- Defining and selecting risk-takers
- Advising compensation and risk committees
- Writing compensation and risk reports and meeting other HR reporting requirements
- Assessing risk management systems by evaluating the effectiveness of established risk-monitoring mechanisms
- Independently assessing the impact of legal regulations (Basel III, Solvency II etc.) on risk management, capitalization and the liquidity position
