26Meaning of variable remuneration

26 Meaning of variable remuneration

(1) The variable remuneration of an accountable person of an accountable entity or a significant related entity is: (a) so much (if any) of the accountable person’s total remuneration as: (i) is conditional on the achievement of objectives; and (ii) is not remuneration of a kind prescribed by the Regulator rules for the purposes of this subparagraph; and (b) so much (if any) of the accountable person’s total remuneration as is remuneration of a kind determined under paragraph (3)(a) or prescribed by the Regulator rules. (2) However, remuneration of a kind determined under paragraph (3)(b) is not variable remuneration of an accountable person of an accountable entity or a significant related entity. (3) The Regulator may, by written notice given to an accountable entity or a significant related entity, determine that: (a) remuneration of a particular kind, of one or more accountable persons, or of a class of accountable persons, of the accountable entity or significant related entity, is variable remuneration; or (b) remuneration of a particular kind, of one or more accountable persons, or of a class of accountable persons, of the accountable entity or significant related entity, is not variable remuneration.

Note: A decision under this subsection is a reviewable decision (see Part 5 of Chapter 3).

(4) The Regulator must give a copy of a determination it makes under subsection (3) to each person who, when the determination is made, is an accountable person covered by the determination. (5) If: (a) after a determination is made under subsection (3), a person becomes an accountable person of the accountable entity or significant related entity; and (b) the determination covers the person; the accountable entity or significant related entity must give a copy of the determination to the person. (6) A notice under subsection (3) is not a legislative instrument. (7) Regulator rules made for the purposes of paragraph (1)(b), or a determination made for the purposes of paragraph (3)(a), may also identify the day, or a way of working out the day, on which the minimum deferral period for the variable remuneration starts.