In our May newsletter (see HERE) we summarised the changes to the definition of variable remuneration proposed by APRA. The main issue was the how, or if, carving out the deferral requirement for incentives which are paid to executives who are accountable for other entities as well as a running a bank or part thereof (see HERE) .

Under the proposed changes these poor souls ended up deferring pay for running a businesses that had nothing to do with a bank. Guerdon Associates lodged a submission proposing that the fixed remuneration similarly be adjusted to avoid inconsistencies in the treatment of variable remuneration deferral outcomes.

After consideration of several submissions the final wording has been released. See HERE .

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