Big bank bonuses to be stamped out December 2011
Posted date: 7 December 2011
The Treasury has launched a consultation outlining how it plans to tackle unacceptable bonuses in banks by demanding transparency.
The proposals would further extend the current transparency rules at large banks by requiring the remuneration details of the eight highest paid non-board executives to be disclosed. It is thought this information will help shareholders to hold senior management to account for the level of remuneration packages.
The changes will apply to establishments with assets in excess of £50 billion and currently it is anticipated that 15 banks would be affected, as well as the UK arms of large foreign institutions.
However, under the proposals disclosure will not be required from European Economic Area banks as they are subject to the rules of their home regulators.
Mark Hoban, Financial Secretary to the Treasury, said: “We want shareholders to hold banks
to account for their bonus structure, which is why we are taking action to make top-level pay
more transparent.”
to account for their bonus structure, which is why we are taking action to make top-level pay
more transparent.”
Although details about individuals will not be required, such as name and job title, the proposals do want the disclosure of pay to be broken down into fixed, variable and deferred variable pay, long-term incentive scheme vestings, pension accruals, joining and severance benefits.
The consultation period will close on 14 February 2012.
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- December 2011
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