Financial sector bonus cap change: Identified Staff only
Recently, the House of Representatives agreed to an amendment significantly limiting the scope of the bonus ceiling. The bonus ceiling would thus only apply to Identified Staff (individuals whose activities have a material impact on the company’s risk profile). Also, the requirement to base at least 50% of variable remuneration on non-financial criteria (article 1:118) only applies to Identified Staff under the amendment.
The obligation to have a remuneration policy for all persons working under the responsibility of a financial undertaking remains in full force and effect and not only for Identified Staff.
It is not yet clear if and when the amendment will take effect; the proposal is now before the Senate. If the change takes effect, it will have major consequences for financial companies, their remuneration policy, and the room for negotiation regarding severance payments.
For more information, please contact Naomi Reijn of Meike Barmentlo
