• Mini budget: Lost trust

    The elephant in the room is a bigger danger to SA than weak finances, says Jaco Leuvennink.

  • Time to tackle floods

    Government isn't doing enough so it's up to us to take responsibility, says Mandi Smallhorne.

  • Conquering prejudice

    Every workplace would benefit from a self-critical process relating to prejudices, says Ian Mann.

Loading...

Global banks warned to rein in bonuses

Nov 15 2012 07:11
Reuters
London - Britain's top banking supervisor has warned banks operating in the country to claw back staff bonuses this year to reflect the damage caused to the sector by high-profile scandals in the past 12 months, the Financial Times reported on Thursday.

Andrew Bailey, head of the FSA's prudential business unit, wrote to bank chief executives in October warning them that it would be looking for evidence they had "clawed back" deferred bonuses from people involved in scandals.

The newspaper did not disclose the names of any banks that had received Bailey's letter.

Britain's banks have been rocked by a series of scandals including interest rate rigging, breaches of anti-money laundering requirements and the mis-selling of loan insurance and complicated interest rate hedging products.

Bailey also urged banks in his letter, sent to British and global institutions with a presence in the country, to consider firm-wide bonus reductions to account for the impact of the scandals, the FT said.

"Ex-post risk adjustment will be a major area of focus in our 2012 review of the firm's remuneration policies. Firms should also forfeit or reduce current year's bonuses if appropriate," the FT said, citing Bailey's letter.


bonuses  |  banks

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about...

Calling all social entrepreneurs - apply for The Venture now!

Are you running an innovative social business that's helping to create a better future? Then pitch for a share of The Venture’s $1m fund and receive world-class mentorship to help accelerate your business growth.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Pick n Pay launches new website for easier online shopping

Previous results · Suggest a vote

Loading...