Section 8: Governance of credit institutions and finance companies

The overall remuneration policy, including salaries and 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, of credit institutions and finance companies shall apply to those categories of staff whose professional activities have a significant impact on the risk profile of the undertaking or group. This policy shall be consistent with the economic strategy,…

The Board of Directors, the Supervisory Board or any other body exercising equivalent supervisory functions shall adopt and regularly review the general principles of the remuneration policy and monitor their implementation. In the case of a branch of a credit institution mentioned in I of Article L. 511-10, the persons mentioned in the second paragraph of Article L. 511-13 shall transmit to the body of the credit institution to which…

The Ordinary General Meeting of credit institutions and finance companies is consulted annually on the total remuneration of all kinds paid during the previous financial year to the persons referred to in article L. 511-71.

The implementation of the remuneration policy is subject, at least once a year, to a central and independent internal evaluation in order to ensure compliance with the remuneration policy and procedures adopted by the board of directors, the supervisory board or any other body exercising equivalent supervisory functions. In the branches of credit institutions referred to in I of Article L. 511-10, the implementation of the remuneration policy is subject,…

Staff performing control functions are remunerated according to the achievement of objectives related to their functions, independently of the performance of the business areas they control.

The remuneration policy of credit institutions and finance companies makes a distinction, based on clear criteria, between basic fixed remuneration and variable remuneration. Basic fixed remuneration primarily reflects professional experience in relation to the position held and the responsibilities exercised as stipulated in the employment contract or mentioned in the job description. Variable remuneration reflects sustainable performance in line with the Group’s risk policy. It also reflects performance that goes…

Where performance is taken into account, variable remuneration is determined on the basis of a combined assessment of the individual’s performance, the performance of his or her business unit and the overall results of the credit institution or finance company. The performance measurement takes into account all the risks to which the credit institution or finance company is or is likely to be exposed, as well as liquidity requirements and…

The variable part of the total remuneration of the persons referred to in Article L. 511-71 may not exceed the amount of the fixed part of this remuneration. By decision of the competent general meeting of the credit institution or finance company, it may be increased to twice the amount of the fixed remuneration. The relevant General Meeting shall act by a two-thirds majority provided that at least half of…

Credit institutions or finance companies may apply a discount rate to no more than one quarter of the total variable remuneration provided that the payment is made in the form of deferred instruments for a period of at least five years.