New curbs on top pay
REMUNERATION committees and external advisers will play a stronger role in keeping an eye on the salaries and bonuses of senior executives.
Frank O'Dwyer, CEO of the Irish Association of Investment Managers, said the new Capital Requirement Directive III (CRD3) will define the way most public companies define the balance between a director's salary and bonus.
"The institutions all support the idea of pay and bonus. If you just pay a flat fee then you have no leverage for performance. In financial institutions, the bonus used to be all about profit," he said. "Now there is a greater focus on the balance of lending, debt levels and operating earnings."