Tag Archive: financial institutes

Impact of the financial crisis on company pensions

The impact of the financial crisis may mean that companies do not have to adjust their pension benefits, as the Federal Labour Court (Bundesarbeitsgericht, BAG) ruled on April 15, 2014 (docket number: 3 AZR 51/12). The Court ruled that the Defendant, one of Germany’s largest banks, does not have to adjust its company pension because …

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Financial services remuneration: New year, new rules

New international banking standards (Basel III / CRD IV) came into effect in Germany and across Europe on January 1, 2014. Whilst most of the new rules relate to banking supervision, there are some important employment law implications, in particular a new Remuneration Ordinance relating to the remuneration of employees and managers of financial institutions …

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Financial services bonus cap (Sec. 25a KWG): More work to be done?

As of January 1, 2014, the variable compensation of employees and managers of financial institutions in Germany generally cannot exceed 100 % of base salary according to the new Section 25a of the German Banking Act (Kreditwesengesetz/ KWG). The German Federal Financial Supervisory Authority (BaFin) reviewed bonus practices at 14 financial institutions in 2013 (before …

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