EU committee consults the industry on principles for banker bonus policies
LONDON - A new consultation paper from the Committee of European Banking Supervisors (Cebs) proposes guidelines for the reform of banking industry remuneration policies to better align risks with employee compensation.
The Cebs paper contains principles to better align individuals' compensation packages to the risks they run for the firm in general by establishing shared objectives, increased transparency for internal and external stakeholders, improved governance for decision-making and oversight, greater performance management and evaluation of the form compensation takes.
Cebs says its remuneration principles will be added to its internal governance guidelines released on January 25, 2006 as part of the application of the supervisory review process. CP23 is available for industry comment until April 3, 2009 and is available for download here.
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