The European Parliament's Committee on Economic and Monetary Affairs (ECON) has recently made available Rapporteur Arlene McCarthy's Draft Report dated 2 March 2010, on the Commission's proposed CRD 3 package (as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies). The draft report broadly supports the package, while proposing added measures to strengthen the remuneration provisions and ensure Parliamentary oversight of the Basel process.
Amongst other things, the report proposes that: (1) bonuses must be awarded on the basis of long term performance and not be guaranteed; (2) an individual's bonus must not make up more than 50% of their total annual remuneration; and (3) firms must publicly disclose information on their remuneration policies and payments, including payments by business unit and to individual directors.
