Article 5
Policies and procedures in the context of remuneration
Issuers of asset-referenced tokens shall, within the policies and procedures referred to in Article 32(1) of Regulation (EU) 2023/1114, ensure that remuneration procedures, policies and arrangements:
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(a) |
do not create a conflict of interest or provide for incentives in the short, medium or long term for the employees or members of the management body to favour their own interests or the interests of the issuer of asset-referenced tokens to the detriment of any holder of asset-referenced tokens or shareholders or members of the issuer of asset-referenced tokens; |
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(b) |
identify and mitigate any potential conflicts of interest which may be caused by the award of variable remuneration, underlying key performance indicators and risk alignment mechanisms, including the pay out of instruments to employees or management body as part of the variable or fixed remuneration. |