Regulatory requirements dictate that deferral periods for material risk takers (Regulated Employees) should be a minimum of three years. As in previous years, we have chosen to apply these minimum requirements to all employees with deferred awards. We have also once more identified a subset of our most senior Regulated Employees. This Senior Management Group (consisting of 133 employees) are subject to a 4.5 year (cliff vest) deferral period in respect of their REA. This is intended to ensure more than any other employees they have a vested interest in the long-term, sustained performance of the Bank.
A six month retention period also applies following the vesting of each REA tranche for Regulated Employees. For the Senior Management Group, the six month retention period follows the 4.5 year vesting period. As such, they will not realise any of the value of their 2014 REA until at least February 2019 (five years following grant).
All Regulated Employees also receive 50 % of their upfront award in the form of an EUA. The EUA is vested at grant, however is subject to a six month retention period during which time forfeiture provisions are applicable (going beyond regulatory requirements).
Below is a summary of the vesting structure for each population of employees with a deferred award (excluding the Management Board).