123. Institutions and competent authorities should ensure that the award, pay out and vesting of variable remuneration, including the application of malus and clawback arrangements, under the institutions' remuneration policy is not detrimental to maintaining a sound capital base.
124. When assessing if the capital base is sound, the institution should take into account its overall own funds and in particular the Common Equity Tier 1 capital, the capital requirement, including the combined capital buffer requirement as defined in Article 128(6) of Directive 2013/36/EU, the leverage ratio buffer requirement as defined in Article 92(1a) of Regulation (EU) No 575/2013, the minimum requirement for own funds and eligible liabilities as defined in Article 45c of Directive 2014/59/EU and any capital add on and the restrictions on distributions set out in Articles 141 and 141b of Directive 2013/36/EU and Article 16a of Directive 2014/59/EU which applies to the variable remuneration of all s