Verordnung über die aufsichtsrechtlichen Anforderungen an Vergütungssysteme von Instituten (Institutsvergütungsverordnung - InstitutsVergV)

This regulation sets out specific supervisory requirements for the remuneration policies of financial institutions. It aims to ensure that compensation structures do not encourage excessive risk-taking, thereby contributing to the stability of the financial system. It affects financial institutions operating within Germany and their employees. The rules focus on aligning remuneration with long-term performance and risk management, impacting how bonuses and salaries are structured.