Solvency II
Pillar 2: system of governance – Solvency II

Solvency II DR275: DR Arts 258(1)(l), 275 Adopt a risk-aligned written remuneration policy

What does DR275 require?

Undertakings must adopt a written remuneration policy in line with business and risk strategy, risk profile and long-term interests, avoiding conflicts of interest and not encouraging risk-taking beyond tolerance limits, applying to the whole undertaking with specific arrangements for the AMSB, key function holders and material risk takers, overseen by the AMSB, with an independent remuneration committee where significant, disclosed to staff, and stating how sustainability risks are integrated. For the specific arrangements: a balanced fixed component, variable pay on individual, unit and overall results, deferral of a substantial portion for at least three years, financial and non-financial criteria, risk adjustment, termination payments that do not reward failure, no personal hedging, and control functions' variable pay independent of the units they control.

Maintained by Gerard BlokdykVerified against the published standard Control text last updated

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