Life Insurance (prudential standard) determination No. 3 of 2010 - Prudential Standard LPS 510 - Governance
Remuneration PolicyRemuneration Policy
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Remuneration Policy
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A regulated institution (including an EFLIC) must establish and maintain a written Remuneration Policy. The Remuneration Policy must outline the remuneration objectives and the structure of the remuneration arrangements, including but not limited to the performance-based remuneration components, of the regulated institution.
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The Remuneration Policy must be approved by the Board or, for an EFLIC, by the Compliance Committee with delegated authority from the Board.
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For the purposes of this Prudential Standard, remuneration arrangements include measures of performance, the mix of forms of remuneration (such as fixed and variable components, and cash and equity-related benefits) and the timing of eligibility to receive payments. All forms of remuneration are captured by this Prudential Standard.
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In addition to any other objectives, the Remuneration Policy’s performance-based components of remuneration must be designed to encourage behaviour that supports: