A critical analysis of the impact of EU financial legislation on remuneration requirements with a special focus on Maltese license holders

Abstract

The approach to tackle remuneration so widely across the financial services sector has been based on a broad consensus amongst regulators and policy makers within the financial services industry that poorly structured remuneration packages incentive institutions to engage in excessive risks. The entire industry had insufficient risk management oversight and little to no acknowledgment for risk mitigation. This new era of regulated compensation raises the matters of the balance between incentives, corporate governance and risk management.