The rule in plain words

Total variable remuneration (in EUR) in year N of all high earners plus total fixed remuneration (in EUR) in year N of all high earners must be at least 38,000,000 and at most 39,000,000 times total number of high earners.

EBA checks it for eight columns: MB supervisory function, MB management function, dealing on own account, underwriting and placing of instruments, investment advice, order execution, portfolio management, operation of MTF/OTF, independent control functions, and all other staff. That makes eight checks. A failure names the one that failed.

How the Line4 Check report words itShow

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.

Operation of MTF/OTF: Total variable remuneration (in EUR) in year N of all high earners + Total fixed remuneration (in EUR) in year N of all high earners >= 38000000 × Total number of high earners and Total variable remuneration (in EUR) in year N of all high earners + Total fixed remuneration (in EUR) in year N of all high earners <= 39000000 × Total number of high earners

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 04.01 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 the remuneration of high earners - IFD (I) (R 04.01.a)

Rows

0040Total number of high earners
0060Total fixed remuneration (in EUR) in year N of all high earners
0140Total variable remuneration (in EUR) in year N of all high earners

Columns

0010MB Supervisory function
0020MB Management function
0030Dealing on own account, underwriting and placing of instruments
0040Investment advice, order execution
0050Portfolio management
0060Operation of MTF/OTF
0070Independent control functions
0080All other staff

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{R_04.01.a,r0140,c0060,} + {R_04.01.a,r0060,c0060,} >= 38000000 * {R_04.01.a,r0040,c0060,} and {R_04.01.a,r0140,c0060,} + {R_04.01.a,r0060,c0060,} < 39000000 * {R_04.01.a,r0040,c0060,}

The next five:

{R_04.01.a,r0140,c0020,} + {R_04.01.a,r0060,c0020,} >= 38000000 * {R_04.01.a,r0040,c0020,} and {R_04.01.a,r0140,c0020,} + {R_04.01.a,r0060,c0020,} < 39000000 * {R_04.01.a,r0040,c0020,}

{R_04.01.a,r0140,c0070,} + {R_04.01.a,r0060,c0070,} >= 38000000 * {R_04.01.a,r0040,c0070,} and {R_04.01.a,r0140,c0070,} + {R_04.01.a,r0060,c0070,} < 39000000 * {R_04.01.a,r0040,c0070,}

{R_04.01.a,r0140,c0050,} + {R_04.01.a,r0060,c0050,} >= 38000000 * {R_04.01.a,r0040,c0050,} and {R_04.01.a,r0140,c0050,} + {R_04.01.a,r0060,c0050,} < 39000000 * {R_04.01.a,r0040,c0050,}

{R_04.01.a,r0140,c0080,} + {R_04.01.a,r0060,c0080,} >= 38000000 * {R_04.01.a,r0040,c0080,} and {R_04.01.a,r0140,c0080,} + {R_04.01.a,r0060,c0080,} < 39000000 * {R_04.01.a,r0040,c0080,}

{R_04.01.a,r0140,c0010,} + {R_04.01.a,r0060,c0010,} >= 38000000 * {R_04.01.a,r0040,c0010,} and {R_04.01.a,r0140,c0010,} + {R_04.01.a,r0060,c0010,} < 39000000 * {R_04.01.a,r0040,c0010,}

And 2 more, the same formula for the other cells it covers.

Every REM high earners (IF) rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.

Total variable remuneration in year N of all high earners plus total fixed remuneration in year N of all high earners must be at least 38,000,000 and at most 39,000,000 times total number of high earners (EBA rule v12345_m)

The rule in plain words

What to do if your filing fails it

The cells it reads

Other rules on R 04.01.a