Finally the BOE has lept into action to shut the door on executives and their excessive bonus culture.
No, of course they haven’t.
Yesterday we were primed for the details of how the BOE’s PRA and FCA would tackle financial industry remuneration vs performance and today the BOE have released a statement on it . We’ll, they’ve announced some details that will be up for consultation, which they hope to complete in early 2015 (is that the sound of a can being kicked?)
The main focus points are on accountability and remuneration. They basically want to enhance the function of responsibility in senior managers, introduce a certification regime and implement a new set of conduct rules.
As for remuneration they are looking to deferrals of rewards for a minimum of 5 or 7 years, based on seniority, and want firms to have a greater ability to recover variable remuneration. They also want to tighten up on discretionary payments where banks have been bailed out.
ThePRA has also published final rules on the bonus clawback and have introduced a 7 year minimum period for clawback from the date of the reward. That comes into effect 1ts Jan 2015.
The full statement is here
