Abstract

A statutory obligation to appoint a remuneration committee has been imposed on banks that were defined as „significant banks”. The remuneration committee must be constituted in such a way as to enable it to exercise competent and independent judgment on remuneration policies and practices, including risk, capital and liquidity management. The competenciese of the remuneration committee are described extensively in the banking law: consultation and monitoring theremuneration policy adopted by a bank and supporting bodies of bank in formulation and implementation of remuneration policies. However, the actual significance of such committee and its impact on the bank’s remuneration policy will largely depend on its composition, the independence of its members, and their knowledge and experience.