5.1 The CRD IV introduced several remuneration principles in order to curb excessive risk taking in the financial services sector.
5.2 The Directive aimed to implement standards and principles of remuneration at a Union-wide level which reflect the Financial Stability Board’s (FSB) Principles for Sound Compensation Practices and Implementation Standards. More specifically, it introduced an express obligation for credit institutions and investment firms to establish and maintain, for categories of staff whose professional activities have a material impact on the risk profile of credit institutions and investment firms, remuneration policies and practices that are consistent with effective risk management.
5.3 CRDV offers several amendments to this framework with the goal of promoting ‘the sound and effective risk management of institutions by aligning the long-term interests of both institutions and their staff qualifying as material risk takers’. The PRA will address these within
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