Question
Article 450(1)(h)(v) and Article 450(1)(h)(vi) both refer to severance; (v) asks for severance payments made during the financial year and (vi) asks for severance payments awarded during the financial year. Are these one and the same?
Background on the question
(v) also asks for the new sign ons (vi) also asks for the highest such award [severance] to a single person
Answer
Article 450 of Regulation (EU) No 575/2013 (CRR) concerns disclosure requirements regarding the remuneration policy and practices. Severance payments are comprised by the wording of both article 450(1)(h)(v) and (vi). Point (v) refers to the disclosure of severance payments made during the financial year. Point (vi) to the severance payments awarded during the financial year. Therefore "made" as mentioned in Article 450(1)(h)(v) refers to the de facto payment of the severance payment. Thus this provision obliges the institutions to disclose all severance payments paid out in the relevant financial year regardless of the moment of their award. "Awarded" in Article 450(1)(h)(vi) refers to severance payments which are awarded in the relevant financial year but not necessarily yet paid out to the employee. Therefore the total amount of severance payment to be paid out in the financial year may differ from the awarded amount, due to the potential deferral of severance payments.