Section 8: Governance of investment firms

Where performance is taken into account, the variable remuneration granted and paid to the categories of staff referred to in Article L. 533-30 shall be determined on the basis of a combined assessment of the individual performance of the person concerned, the performance of his business unit and the overall results of the investment firm. The measurement of performance shall take into account the risks to which the investment firm…

Payments linked to the early termination of an employment contract must correspond to effective performance assessed over time and not reward failure or fault. Global remuneration linked to compensation or buy-outs of previous employment contracts must be consistent with the long-term interests of the investment firm.

The allocation of variable components of total remuneration within the investment firm takes account of all the risks to which it is or is likely to be exposed.

Within investment firms of significant importance in relation to their size and in accordance with criteria relating to the level of remuneration of the individual, at least half of the variable remuneration shall be allocated in the form of one of the following instruments: 1° Shares or equivalent property rights, depending on the legal structure of the investment firm; 2° Equity-linked instruments or equivalent non-cash instruments, depending on the legal…

In investment firms of significant importance in terms of their size and according to criteria relating to the level of remuneration of the individual, the payment of a portion at least equal to 40% of the variable part of the total remuneration is deferred for a period of three to five years. The duration of the deferral is set taking into account the length of the investment firm’s business cycle,…

By way of derogation fromarticle L. 1331-2 of the French Labour Code, the total amount of variable remuneration may, in whole or in part, be reduced or give rise to restitution where the financial results of the investment firm are mediocre or negative and in particular where the person concerned has disregarded the rules laid down by the investment firm with regard to risk-taking, in particular because of his responsibility…

Discretionary pension benefits as defined in Article 4(1) 73 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 shall be consistent with the economic strategy, objectives, values and long-term interests of the investment firm. Within investment firms of significant importance in terms of their size and according to criteria relating to the level of remuneration of the person, the payment of discretionary…

The persons referred to in article L. 533-30 are prohibited from using individual hedging or insurance strategies with regard to remuneration or liability in order to limit the application of the provisions of this sub-section. The provisions of the previous paragraph are a matter of public policy.

Variable remuneration shall not be paid by means of financial instruments or methods that facilitate non-compliance with the provisions of Titles I and III of Book V of this Code or with Regulation (EU) 2019/2033.

A decree in the Conseil d’Etat shall lay down the conditions for the application of this sub-section.