Welcome to Allen & Overy’s Employment Talk blog, sharing with you our views and insights into the latest cross-border trends, risks and developments in European banking regulation on pay and bonuses.

Financial sector pay reform: looking ahead

David Cummings

Pay regulation is a moving target – one thing gets crossed off your “to do” list but there are typically several more “to do’s” around the corner. It is the same story this year. Firms may be relieved to have 2016 arrangements in place (which for many PRA firms incorporate stricter deferral, vesting and Read More

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Europe – in or out?

Sheila Fahy

Over the next few years the question of whether the UK should remain a member of the EU will be hotly debated by stakeholders, and will culminate in a referendum of the people. Believe it or not, being in the EU has almost nothing to do with straight bananas and the Euro-sausage but much to Read More

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EBA guidance sheds lights on CRDIV remuneration rules

Felicity Gemson

Financial sector firms have had to operate CRD IV-compliant remuneration policies since 2014, but without certainty as to what the rules entail in some areas and what flexibility they permit. The European Banking Authority has finally unveiled draft guidelines with the detail and is consulting on these until 4 June 2015. Headline issues for UK-regulated Read More

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Banking pay reform: what’s coming up?

Felicity Gemson

Pay regulation was a recurrent theme in last week’s headlines. The Government announced that it is dropping its legal challenge to CRD IV bonus cap rules, confirming what most firms had expected – that the bonus cap is a reality. The Government’s chances of success before the ECJ had plummeted after the Advocate General resoundingly dismissed Read More

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Regulatory Requirements versus Employment Law – Corporate Challenges for Compliance

Hans-Peter Löw

In Europe companies in highly regulated sectors increasingly face contradictory orders by regulatory requirements and employment law. Here are some examples: • CRD IV requires a clawback of variable remuneration in case of subsequent misbehaviour. The German Federal Labour Court however does not allow the forfeiture or even clawback of remuneration based on events that Read More

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