According to these rules, the variable components of bank managers’ remuneration are restricted to  2  Hellmann, T F; Murdock, K C; Stiglitz, J E (2000), Liberalization, Moral Hazard in Banking, and Prudential Regulation: Are Capital Requirements Enough? In The American Economic Review, Vol 90, No 1, pp 147–165. 2  BIS central bankers’ speeches  100% of the fixed components.
If shareholders agree, this can be increased to 200%. Furthermore, banks have to establish a remuneration committee and meet several new disclosure requirements on remuneration. Nevertheless, we certainly have to be wary of regulatory arbitrage and unintended consequences. Capping the variable components of remuneration has led banks to increase the fixed components.