Bonuses must either be reduced or be deferred in the event of poor licensee, divisional or business unit performance. Subdued or negative financial performance of the licensee must lead to contraction of the licensee’s total variable remuneration, taking into account both current remuneration and reductions in payouts of amounts previously earned, including through malus and clawback arrangements. Recognition of staff who have achieved their targets or better, may take place by way of deferred compensation, which may be paid once the licensee’s performance improves.