Key takeaways

• The PRA is consulting on its draft supervisory statement on Solvency II remuneration requirements.
• Current proposals include a wide definition of Key Staff who will be subject to specific arrangements in re/insurance firms’ remuneration policies.
• The specific arrangements include deferral of at least 40% of variable pay for a minimum period of three years, during which the variable pay is subject to potential claw-back.
• Performance when calculating variable remuneration for Key Staff must be measured against a balanced scorecard of financial and non financial criteria.