Banking Supervision

International principles on best practices on matters of remuneration

The lack of best practices in remuneration matters in some financial institutions has been one of the contributing factors to the financial crisis that began in the summer of 2007. This has led certain international forums, such as the G-20 and the Financial Stability Forum (now replaced by the Financial Stability Board), high-level European bodies, such as the European Commission, and international regulatory bodies, such as the Basel Committee and the Committee of European Banking Supervisors (CEBS), to recently pay great attention to the remuneration practices of financial institutions.

In April 2009 the Financial Stability Forum (FSF) published the document entitled FSF Principles for Sound Compensation Practices and a short time later the CEBS published its High level principles of Remuneration Policies . In September 2009, the Financial Stability Board (FSB) published a series of Application Standards of the Sound Compensation Practices published by the FSF, dealing with those areas in which quick progress is required. The translation of these documents into Spanish is available on this web page.

The Banco de España, in co-ordination with other supervisors in our area, promotes the dissemination of these principles, as well as their early adoption and implementation in the institutions supervised.

• FSF Principles for Sound Compensation Practices
• FSB Principles for Sound Compensation Practices. Implementation Standards
• CEBS: High-level principles for Remuneration Policies