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Remuneration solutions

Build tax-efficient, compliant and engaging remuneration strategies with Arendt’s end-to-end legal and advisory services. From carry structuring to inpatriate tax, we cover it all.

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Remuneration essentials
Remuneration strategy
How Arendt helps

Remuneration essentials

Watch the Remuneration Essentials videos, Arendt’s new expert video series covering all the key pillars of remuneration strategies. Focusing on core topics such as bank remuneration policies and fund-related incentive plans like carried interest, each episode delivers clear insights to help you design and implement compliant, efficient and sustainable frameworks. Watch the series to stay aligned with market best practices and evolving regulatory expectations.

Robust remuneration strategy

In today’s competitive landscape, a robust remuneration strategy is a cornerstone for talent retention, tax efficiency and long-term strategic alignment. To build the right framework, you need to achieve the optimum balance between advisory, legal, tax and regulatory compliance, especially across jurisdictions.

Whether you’re dealing with carried interest, incentive plans or inpatriate regimes, or aligning with AIFMD and UCITS remuneration rules, the stakes are high. Poorly designed structures can expose companies to reputational, financial and legal risk. It can also put them at a significant disadvantage in the competition for talent.

Key challenges include

Structuring remuneration to ensure regulatory compliance
Calibrating cross-border tax implications for incoming inpatriates and fund managers
Setting up transparent payout mechanisms (e.g. deferral, clawback, liquidity events)
Balancing fixed vs. variable pay appropriately
Delivering employee communication strategies that drive engagement and minimise confusion
Finding the right balance of flexibility for your employees, while monitoring and managing the related impacts

Arendt helps you tackle these questions strategically, ensuring your policies align with both domestic obligations and international trends.

How Arendt helps

Design and structuring of incentive mechanisms

We help clients design and implement incentive schemes tailored to their workforce, business model and regulatory environment. This includes:

Long-term value-sharing plans (stock options, share plans, phantom shares, carried interest, etc.)
Bonus schemes, including performance- and discretion-based structures
Compensation structuring in line with Luxembourg’s tax optimisation regimes (e.g. inpatriate tax regime, complementary pension)

Regulatory remuneration requirements

For regulated entities, we provide tailored assistance in complying with applicable EU and Luxembourg remuneration frameworks, including:

The AIFMD and UCITS IV & V Directives, as well as corresponding national laws
ESMA Guidelines on sound remuneration policies under AIFMD and UCITS
CSSF Circular 10/437 on remuneration policies in the financial sector
Internal remuneration policy drafting and alignment with governance requirements

Employment law aspects of compensation

Remuneration must be aligned with local employment law standards. Our employment law experts assist with:

Drafting contractual clauses, offer letters and variable remuneration policies
Equal pay and pay transparency compliance in light of EU initiatives
Dismissal risk mitigation linked to incentive entitlements

Operational support and implementation

We don’t just give advice – we also put it into practice. Our team ensures:

End-to-end project management for new plans or transitions
Communication with employees and HR teams
Filing, liaising with tax and social security authorities and support during audits

Multi-jurisdictional capabilities

Use specific services, tools, or strategies your company offers to solve these issues (e.g., compliance tools, risk mitigation strategies).

Why choose us

A truly integrated one-stop-shop service: tax, regulatory, employment and corporate – all in one team
Capable of handling both structuring and operations, from concept to execution
Known for being responsive, detail-oriented and client-focused
Trusted by Luxembourg-based multinationals, regulated entities and foreign law firms seeking local expertise

Contact the Remuneration team