Особености при регулиране на възнагражденията във финансовите институции по смисъла на насоките на ЕБО (Европейския банков орган)
Peculiarities of Regulating Remuneration in Financial Institutions within the Scope of the EBA (European Banking Authority) Guidelines

Author(s): Todor Shopov
Subject(s): Politics / Political Sciences, Politics, Economy, Business Economy / Management, Economic policy, EU-Approach / EU-Accession / EU-Development, Accounting - Business Administration, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: remuneration policy; remuneration regulation; bonus cap; banking regulation
Summary/Abstract: This paper examines the importance of remuneration policies implemented in financial institutions and specific challenges in their prudent regulation. The institution’s remuneration policy for all staff should be consistent with the objectives of the institution’s risk strategy, including objectives related to environmental, social and governance (ESG) risks. The use of a variable remuneration system motivates management staff, but at the same time may incentivize excessive risk-taking behavior. The European Banking Authority’s guidelines on prudent remuneration policies are designed to limit risk-taking behaviour without hindering the competitive ability of financial institutions to attract and retain staff. The report outlines key successes, identified shortcomings and potential opportunities for improving prudential requirements related to remuneration. Regarding the introduced maximum ratio between variable and fixed remuneration, insufficient evidence has yet been identified to draw definitive conclusions about its impact on competitiveness, financial stability and employees working for subsidiaries located outside the European economic market.

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