The Australian Prudential Regulation Authority (APRA) has stepped up its campaign to defer performance-based pay in a second consultation package on remuneration for general and life insurers. 

The regulator has made adjustments to the draft standards on deferred payment so a company’s long-term performance can be measured.

“APRA’s approach to deferred payment recognises that when performance-based remuneration is granted there is often uncertainty about the measurement of that performance,” it said in a statement.

“Deferral of both the allocation and vesting of such performance-based remuneration is one method of allowing time for the outcomes of the business activities to be reliably measured.”

APRA also says board discretion is needed to “protect the financial soundness of the institution in adverse circumstances”.