EIOPA is preparing new rules on remuneration in the insurance and reinsurance sector
The draft prepared by the european authority, pending publication of the final opinion, will apply to the remuneration of certain professionals of insurance and reinsurance companies.
Brussels approves CRD V containing new legislation on remuneration
On May 20, 2019, the presidents of the European Parliament and the European Council signed the Directive of the European Parliament and of the Council amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures (CRD V). The final version of CRD V is available here.
The need to comply with best practices recommended by proxy advisors and the CNMV good governance code in the design and implementation of incentive plans
The design and implementation of a share-based incentive plan involves three steps: an analysis of market trends; the need to comply with best practices recommended by proxy advisors and the CNMV good governance code; and preparation of all necessary legal documentation for approval by the company’s governing bodies and the shareholders’ meeting.
Compensation systems as a tool for managing start-up talent
One of the challenges a business association faces in the early stages of its creation and development is how to attract and retain high-potential employees, known as “key people,” in today’s strikingly competitive labor market. This is particularly difficult for those recently-launched endeavors on a tight budget.
Flexible compensation permits employees to receive tax-efficient income in kind
Flexible compensation permits employees to decide how to receive their salary, replacing part of their cash salary (where certain statutory requirements and limits are met) with certain items of salary in kind, which are also advantageous from a tax standpoint (health insurance, meal vouchers, transport card, childcare services or training), while increasing their net disposable income, without entailing a higher payroll cost for the company.