The rule in plain words
Total variable remuneration (in EUR) in year N cannot be less than severance payments awarded in previous periods, paid out during the financial year – total amount.
EBA checks it for four columns: MB supervisory function, MB management function, other senior management and other identified staff. That makes four 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 Management function: Total variable remuneration (in EUR) in year N >= Severance payments awarded in previous periods, paid out during the financial year – total amount
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 02.01 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 remuneration of identified staff in investment firms (R 02.01)
Rows
- 0110Total variable remuneration (in EUR) in year N
- 0330Severance payments awarded in previous periods, paid out during the financial year – total amount
Columns
- 0010MB Supervisory function
- 0020MB Management function
- 0090Other senior management
- 0100Other identified staff
A worked example
The first of its checks, with simple numbers.
Severance payments awarded in previous periods, paid out during the financial year – total amount can then be at most 1,200.
A file that reports 1,200 passes. One that reports 1,300 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
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_02.01,r0110,c0020,} >= {R_02.01,r0330,c0020,}The next three:
{R_02.01,r0110,c0100,} >= {R_02.01,r0330,c0100,}{R_02.01,r0110,c0010,} >= {R_02.01,r0330,c0010,}{R_02.01,r0110,c0090,} >= {R_02.01,r0330,c0090,}Other rules on R 02.01
- Total variable remuneration in year N cannot be less than guaranteed variable remuneration in year N, total amount (v12096_m)Warning
- Total variable remuneration in year N cannot be less than the sum of seven rows (v12098_m)Warning
- A sum of seven rows cannot be less than 0.4 times a calculation over four rows (v12099_m)Warning
- If number of identified staff in FTE is more than zero, total fixed remuneration in year N must be more than zero (v12094_m)Warning
- A sum of five rows cannot be less than 0.5 times a calculation over four rows (v12100_m)Warning
- Number of identified staff (headcount) must equal members (headcount) (row 0010, v12101_m)Warning
- Number of other senior management must equal number of identified staff in FTE (v12102_m)Warning
- Number of other identified staff, total must equal number of identified staff in FTE, other identified staff (v12103_m)Warning
Every REM benchmarking (IF) rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.