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CEBS published its principles on remuneration policy which address key aspects of a well functioning remuneration policy of banking institutions.
The scope of the principles covers remuneration policies applying throughout an organisation rather than focusing exclusively on executive pay or severance pay. It focuses on key aspects of the remuneration policy, and in particular:
Ø Alignment of company and individual objectives;
Ø Transparency towards internal and external stakeholders;
Ø Governance with respect to oversight and decision-making;
Ø Performance measurement;
Ø Form of remuneration.
The implementation of these guidelines is expected by the end of the third quarter of 2009. CEBS will further consider implementation aspects of these guidelines in a Pillar 2 context in the coming months.
A public hearing will be held in London on 20 March 2009.
Deadline for consultation is 3 April 2009.