Purpose: Describe the bank's remuneration policy as well as key features of the remuneration system to allow meaningful assessments by users of Pillar 3 data of banks' compensation practices.

Scope of application: The table is mandatory for all banks.

Content: Qualitative information.

Frequency: Annual

Format: Flexible.

Banks must describe the main elements of their remuneration system and how they develop this system. In particular, the following elements, where relevant, should be described:

Qualitative disclosures

(a)

Information relating to the bodies that oversee remuneration. Disclosures should include:

• Name, composition and mandate of the main body overseeing remuneration.
• External consultants whose advice has been sought, the body by which they were commissioned, and in what areas of the remuneration process.
• A description of the scope of the bank's remuneration policy (eg by regions, business lines), including the extent to which it is applicable to foreign subsidiaries and branches.
• A description of the types of employees considered as material risk-takers and as senior managers.

(b)

Information relating to the design and structure of remuneration processes. Disclosures should include:

• An overview of the key features and objectives of remuneration policy.
• Whether the remuneration committee reviewed the firm's remuneration policy during the past year, and if so, an overview of any changes that were made, the reasons for those changes and their impact on remuneration.
• A discussion of how the bank ensures that risk and compliance employees are remunerated independently of the businesses they oversee.

(c)

Description of the ways in which current and future risks are taken into account in the remuneration processes. Disclosures should include an overview of the key risks, their measurement and how these measures affect remuneration.

(d)

Description of the ways in which the bank seeks to link performance during a performance measurement period with levels of remuneration. Disclosures should include:

• An overview of main performance metrics for bank, top-level business lines and individuals.
• A discussion of how amounts of individual remuneration are linked to bank-wide and individual performance.
• A discussion of the measures the bank will in general implement to adjust remuneration in the event that performance metrics are weak, including the bank's criteria for determining "weak" performance metrics.

(e)

Description of the ways in which the bank seeks to adjust remuneration to take account of longer-term performance. Disclosures should include:

• A discussion of the bank's policy on deferral and vesting of variable remuneration and, if the fraction of variable remuneration that is deferred differs across employees or groups of employees, a description of the factors that determine the fraction and their relative importance.
• A discussion of the bank's policy and criteria for adjusting deferred remuneration before vesting and (if permitted by national law) after vesting through clawback arrangements.

(f)

Description of the different forms of variable remuneration that the bank utilises and the rationale for using these different forms. Disclosures should include:

• An overview of the forms of variable remuneration offered (ie cash, shares and share-linked instruments and other forms).
• A discussion of the use of the different forms of variable remuneration and, if the mix of different forms of variable remuneration differs across employees or groups of employees), a description the factors that determine the mix and their relative importance.

Purpose: Provide quantitative information on remuneration for the financial year.

Scope of application: The template is mandatory for all banks.

Content: Quantitative information.

Frequency: Annual

Format: Flexible.

Accompanying narrative: Banks may supplement the template with a narrative commentary to explain any significant movements over the reporting period and the key drivers of such movements.

a

b

Remuneration amount

Senior management

Other material risk-takers

1

Fixed remuneration

Number of employees

2

Total fixed remuneration (rows 3 + 5 + 7)

3

Of which: cash-based

4

Of which: deferred

5

Of which: shares or other
share-linked instruments

6

Of which: deferred

7

Of which: other forms

8

Of which: deferred

9

Variable remuneration

Number of employees

10

Total variable remuneration (rows 11 + 13 + 15)

11

Of which: cash-based

12

Of which: deferred

13

Of which: shares or other
share-linked instruments

14

Of which: deferred

15

Of which: other forms

16

Of which: deferred

17

Total remuneration (rows 2 + 10)

Definitions and instructions

Senior management and other material risk-takers categories in columns (a) and (b) must correspond to the type of employees described in Table REMA.

Other forms of remuneration in rows 7 and 15 must be described in Table REMA and, if needed, in the accompanying narrative.

Purpose: Provide quantitative information on special payments for the financial year.

Scope of application: The template is mandatory for all banks.

Content: Quantitative information.

Frequency: Annual.

Format: Flexible.

Accompanying narrative: Banks may supplement the template with a narrative commentary to explain any significant movements over the reporting period and the key drivers of such movements.

Special payments

Guaranteed bonuses

Sign-on awards

Severance payments

Number of employees

Total amount

Number of employees

Total amount

Number of employees

Total amount

Senior management

Other material risk-takers

Definitions and instructions

Senior management and other material risk-takers categories in rows 1 and 2 must correspond to the type of employees described in Table REMA.

Guaranteed bonuses are payments of guaranteed bonuses during the financial year.

Sign-on awards are payments allocated to employees upon recruitment during the financial year.

Severance payments are payments allocated to employees dismissed during the financial year.