More than half of variable remuneration
to be deferred at least three years
PRESS RELEASE
FI has decided on new regulations for variable compensation which will enter into force on 1 January 2010. The new regulations apply in principle for all financial firms under FI's supervision. The remuneration policy will apply for all employees. It shall describe how the remuneration system is designed, how it shall work and be appraised. The remuneration policy shall promote a long-term focus and not encourage excessive risk-taking.
For employees who can influence the level of risk in the firm, a minimum of 60 per cent of the variable remuneration will be deferred for at least three years. Before it is later paid out, a risk adjustment of the amount shall be made, in other words, the result for which the remuneration is based on shall be ensured and appraised. Under certain circumstances, such as a significant worsening of a firm’s result, it shall be possible to reduce or eliminate the remuneration.
For employees who can influence the firm’s level of risk, the regulations shall also be applied for remuneration that will be decided on in 2010 but covers the period prior to 1 January 2010.
The firm shall disclose detailed information regarding the remuneration.
The deferment of remuneration will not affect already binding contracts. The firm shall report to FI not later than 31 August 2010 whether there are remaining contacts that do not coincide with the new regulations. The firms shall also describe what they have done in order to adapt the contracts to these regulations.
