Applicable remuneration policy

The question relates to members of staff who are classified as identified staff by the group, whose country of employment is a third country, and who are also appointed as non-executive directors (“NEDs”) on the board of directors of a subsidiary credit institution licensed in a Member State (“EU subsidiary”). These NEDs are classified as identified staff for the EU subsidiary but are not seconded to the EU subsidiary and are not paid any form of remuneration or emolument for their directorship on the EU subsidiary. In such case, should the remuneration policy of the EU subsidiary apply to such NEDs even if they do not receive any form of compensation/benefit whatsoever for their role with the EU subsidiary? Whilst in relation to seconded individuals this matter has been clarified in the EBA GLs on sound remuneration policies (EBA/GL/2021/04), it is still not expressly clear whether any such NEDs would also be subject to the EU subsidiary’s remuneration policy. In this case it is reasonably expected that given that such NEDs are not being paid either directly or indirectly for the services they are rendering to the EU subsidiary, the group’s remuneration policy (rather than the EU subsidiary’s remuneration policy) is to apply. It would be appreciated if this point is clarified.

The question relates to members of staff who are classified as identified staff by the group, whose country of employment is a third country, and who are also appointed as non-executive directors (“NEDs”) on the board of directors of a subsidiary credit institution licensed in a Member State (“EU subsidiary”). These NEDs are classified as identified staff for the EU subsidiary but are not seconded to the EU subsidiary and are not paid in any form of remuneration or emolument for their directorship on the EU subsidiary.