The rule in plain words
Shares or equivalent ownership interests plus share-linked instruments or equivalent non-cash instruments plus other instruments cannot be less than 0.5 times these five worked out:
- Total variable remuneration of all high earners (in EUR)
- Minus guaranteed variable remuneration awards – total amount
- Minus severance payments awarded for the financial year to identified staff, that are not taken into account in the bonus cap
- Minus for institutions that benefit from a derogation at an institutional level variable remuneration of individual high earners that are identif
- Minus total amount of variable remuneration of high earners that are not identified staff
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.
All high earners in investment firms that are subject to Article 25 and 34 of Directive 2019/2034: Of which: shares or equivalent ownership interests + Of which: share-linked instruments or equivalent non-cash instruments + Of which: other instruments >= 0.5 × (Total variable remuneration of all high earners (in EUR) - Guaranteed variable remuneration awards – Total amount - Of which severance payments awarded for the financial year to identified staff, that are not taken into account in the bonus cap - For institutions that benefit from a derogation at an institutional level Variable remuneration of individual high earners that are identif - Total amount of variable remuneration of high earners that are not identified staff)
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 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
- 0100Total variable remuneration of all high earners (in EUR)
- 0120Of which: shares or equivalent ownership interests
- 0122Of which: share-linked instruments or equivalent non-cash instruments
- 0130Of which: other instruments
- 0182Guaranteed variable remuneration awards – Total amount
- 0201Of which severance payments awarded for the financial year to identified staff, that are not taken into account in the bonus cap
- 0250For institutions that benefit from a derogation at an institutional level Variable remuneration of individual high earners that are identif
- 0260Total amount of variable remuneration of high earners that are not identified staff
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,r0120,c0090,} + {R_04.00.a,r0122,c0090,} + {R_04.00.a,r0130,c0090,} >= 0.5 * ({R_04.00.a,r0100,c0090,} - {R_04.00.a,r0182,c0090,} - {R_04.00.a,r0201,c0090,} - {R_04.00.a,r0250,c0090,} - {R_04.00.a,r0260,c0090,})The next five:
{R_04.00.a,r0120,c0040,} + {R_04.00.a,r0122,c0040,} + {R_04.00.a,r0130,c0040,} >= 0.5 * ({R_04.00.a,r0100,c0040,} - {R_04.00.a,r0182,c0040,} - {R_04.00.a,r0201,c0040,} - {R_04.00.a,r0250,c0040,} - {R_04.00.a,r0260,c0040,}){R_04.00.a,r0120,c0050,} + {R_04.00.a,r0122,c0050,} + {R_04.00.a,r0130,c0050,} >= 0.5 * ({R_04.00.a,r0100,c0050,} - {R_04.00.a,r0182,c0050,} - {R_04.00.a,r0201,c0050,} - {R_04.00.a,r0250,c0050,} - {R_04.00.a,r0260,c0050,}){R_04.00.a,r0120,c0070,} + {R_04.00.a,r0122,c0070,} + {R_04.00.a,r0130,c0070,} >= 0.5 * ({R_04.00.a,r0100,c0070,} - {R_04.00.a,r0182,c0070,} - {R_04.00.a,r0201,c0070,} - {R_04.00.a,r0250,c0070,} - {R_04.00.a,r0260,c0070,}){R_04.00.a,r0120,c0010,} + {R_04.00.a,r0122,c0010,} + {R_04.00.a,r0130,c0010,} >= 0.5 * ({R_04.00.a,r0100,c0010,} - {R_04.00.a,r0182,c0010,} - {R_04.00.a,r0201,c0010,} - {R_04.00.a,r0250,c0010,} - {R_04.00.a,r0260,c0010,}){R_04.00.a,r0120,c0030,} + {R_04.00.a,r0122,c0030,} + {R_04.00.a,r0130,c0030,} >= 0.5 * ({R_04.00.a,r0100,c0030,} - {R_04.00.a,r0182,c0030,} - {R_04.00.a,r0201,c0030,} - {R_04.00.a,r0250,c0030,} - {R_04.00.a,r0260,c0030,})And 3 more, the same formula for the other cells it covers.
Other rules on R 04.00.a
- Total variable remuneration of all high earners cannot be less than the sum of five rows (v12117_m)Warning
- Number of high earners in subsidiaries that are subject to a specific remuneration framework under other union cannot be more than total number of high earners (v12110_m)Warning
- None of the 222 values it checks in information on the remuneration of high earners (I) can be negative (v12132_s)Warning
- Total number of high earners must equal the sum of its three parts (row 0040, v12108_m)Warning
- Total number of high earners must equal the sum of its three parts (row 0040, v12186_m)Warning
- Identified staff cannot be more than total number of high earners (row 0050, v12187_m)Warning
- Identified staff cannot be more than total number of high earners (row 0050, v12188_m)Warning
- Identified staff cannot be more than total number of high earners (row 0050, v12189_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.