Banking Act 1959

Part IIAA - The Banking Executive Accountability Regime  

Division 4 - Deferred remuneration obligations  

SECTION 37EB   Minimum amount of variable remuneration to be deferred  

(1)  
The amount of an accountable person ' s variable remuneration that is required to be deferred under subparagraph 37E(1)(a)(ii) is as follows:


Minimum amount of variable remuneration to be deferred
Item If the accountable person is: ... the amount is:
1 The Chief Executive Officer of a large ADI The lesser of:
(a) 60% of the Chief Executive Officer ' s variable remuneration for the financial year (the relevant financial year ) in which the decision was made granting the variable remuneration; or
(b) 40% of the Chief Executive Officer ' s total remuneration for the relevant financial year.
2 An accountable person of: The lesser of:
(a) a large ADI; or (a) 40% of the accountable person ' s variable remuneration for the relevant financial year; or
(b) a subsidiary of a large ADI;
other than the Chief Executive Officer of a large ADI (b) 20% of the accountable person ' s total remuneration for the relevant financial year.
3 An accountable person of: The lesser of:
(a) a medium ADI; or (a) 40% of the accountable person ' s variable remuneration for the relevant financial year; or
(b) a subsidiary of a medium ADI
(b) 20% of the accountable person ' s total remuneration for the relevant financial year.
4 An accountable person of: The lesser of:
(a) a small ADI; or (a) 40% of the accountable person ' s variable remuneration for the relevant financial year; or
(b) a subsidiary of a small ADI
(b) 10% of the accountable person ' s total remuneration for the relevant financial year.

(2)  
For the purposes of this section, the value of variable remuneration of an accountable person of an ADI, or a subsidiary of an ADI, that has been deferred is taken to be:


(a) the value worked out, for the accountable person, in the way determined under subsection (3) or (4); or


(b) if no such determination applies in relation to the accountable person - what would have been the value of that remuneration if it had instead been paid to the person at the time the decision to grant it was made.

(3)  
APRA may, by written notice given to an ADI or to a subsidiary of an ADI, determine the way to work out, for the purposes of this section, the value of variable remuneration of accountable persons of the ADI or subsidiary.

(4)  
APRA may, by legislative instrument, determine the way to work out, for the purposes of this section, the value of variable remuneration of:


(a) accountable persons of an ADI included in a specified class of ADIs; or


(b) accountable persons of a subsidiary of an ADI included in a specified class of subsidiaries of ADIs.




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