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  • HC-3.5 HC-3.5 Remuneration Policies[versions up to January 2011]

    • HC-3.5.1 [versions up to January 2011]

      An insurance licensee's remuneration policies (including incentives, bonuses and other rewards), must not encourage short-term or reckless behaviour.

    • HC-3.5.2 [versions up to January 2011]

      Levels of remuneration should be sufficient to attract, retain and motivate Directors and employees of the quality required to run the licensee successfully, but a licensee should avoid paying more than is necessary for this purpose. Where remuneration is structured so as to link rewards to corporate and individual performance, criteria should avoid excessive focus on short-term profitability measures.

    • HC-3.5.3 [versions up to January 2011]

      The review of Directors' remuneration must be a standing item on the insurance licensee's Annual General Meeting agenda, and must be considered by shareholders at every Annual General Meeting. Policies in respect of Directors' remuneration (including pension and severance arrangements) and bonuses must be clearly disclosed in the annual financial statements.

      Amended: January 2007

    • HC-3.5.4 [versions up to January 2011]

      Directors' remuneration must comply with all applicable laws and Regulations, including the provisions contained in Legislative Decree No. 21 of 2001, with respect to promulgating the Commercial Companies Law, capping Directors' remuneration as a percentage of net profits.

      Amended: January 2007