Besides regulating the design of compensation systems in banks, the legislation aims to improve compensation governance and raise the transparency of compensation systems both internally and externally. The various disclosure requirements foresee the annual publication of details on key aspects of compensation.
 
In Germany, the Remuneration Ordinance for Institutions (Institutsvergütungsverordnung) currently requires compensation reports to disclose information on the following:
  • Governance (decision-making processes, compensation control committee, compensation officer)
  • Details of the risk analysis performed
  • The correlation between performance contributions and levels of compensation
  • The compensation strategy and how it relates to the business and risk strategy
  • Detailed qualitative information on the design of the compensation system (pension provision, compensation payments and severance pay, guaranteed bonuses, etc.)
  • CRR institutions must also publish detailed quantitative information on deferred variable compensation; institutions that are not CRR institutions only have to publish limited quantitative information
 
Working alongside you, hkp/// group draws up compensation reports based on your compensation systems. These reports take into account the full depth and breadth of information required by the relevant legislation.