The rule in plain words
Total fixed remuneration of all high earners (in EUR) plus total variable remuneration of all high earners (in EUR) cannot be less than 1,000,000 times total number of high earners.
EBA checks it for nine columns, from MB supervisory function (0010) to all high earners in investment firms that are subject to Articles 25 and 34 of Directive 2019/2034 (0090). That makes nine checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
MB Supervisory function: Total fixed remuneration of all high earners (in EUR) + Total variable remuneration of all high earners (in EUR) >= 1e+06 × Total number of high earners
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark R 04.00 as reported.
- 05This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
Information on the remuneration of high earners (I) (R 04.00.a)
Rows
- 0040Total number of high earners
- 0060Total fixed remuneration of all high earners (in EUR)
- 0100Total variable remuneration of all high earners (in EUR)
Columns
- 0010MB Supervisory function
- 0020MB Management function
- 0030Investment banking
- 0040Retail banking
- 0050Asset management
- 0060Corporate functions
- 0070Independent control functions
- 0080All other high earners
- 0090All high earners in investment firms that are subject to Article 25 and 34 of Directive 2019/2034
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{R_04.00.a,r0060,c0010,} + {R_04.00.a,r0100,c0010,} >= {R_04.00.a,r0040,c0010,} * 1000000The next five:
{R_04.00.a,r0060,c0020,} + {R_04.00.a,r0100,c0020,} >= {R_04.00.a,r0040,c0020,} * 1000000{R_04.00.a,r0060,c0050,} + {R_04.00.a,r0100,c0050,} >= {R_04.00.a,r0040,c0050,} * 1000000{R_04.00.a,r0060,c0090,} + {R_04.00.a,r0100,c0090,} >= {R_04.00.a,r0040,c0090,} * 1000000{R_04.00.a,r0060,c0040,} + {R_04.00.a,r0100,c0040,} >= {R_04.00.a,r0040,c0040,} * 1000000{R_04.00.a,r0060,c0060,} + {R_04.00.a,r0100,c0060,} >= {R_04.00.a,r0040,c0060,} * 1000000And 3 more, the same formula for the other cells it covers.
Other rules on R 04.00.a
- If a sum of five rows is zero or more, total variable remuneration of all high earners cannot be negative (v09293_m)Warning
- Identified staff cannot be more than total number of high earners (row 0050, v09307_m)Warning
- The sum of three rows cannot be more than total variable remuneration of all high earners (v09282_m)Warning
- Severance payments awarded during the financial year: if total amount is reported, number of high earners must be reported (row 0200, v09269_m)Warning
- Total amount of variable remuneration awarded for multi- year periods under programmes which are not revolved annually cannot be more than total variable remuneration of all high earners (v09268_m)Warning
- Total amount of contributions to discretionary pension benefits in year N cannot be more than total variable remuneration of all high earners (v09267_m)Warning
- Severance payments awarded during the financial year, total amount cannot be more than total variable remuneration of all high earners (v09266_m)Warning
- Severance payments awarded during the financial year, number of high earners cannot be more than total number of high earners (v09265_m)Warning
Every REM high earners rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.