Top City bankers must wait 10 years for guaranteed bonuses, watchdogs rule
Bank of England and FCA rule bonuses must be subject to a decade-long clawback period for senior staff if any wrongdoing is alleged
The most senior bankers in the City may have to wait 10 years to guarantee that their bonuses will not be clawed back, as a result of a series of measures intended to rebuild public trust in the financial services industry.
However, outlining their proposals on Tuesday, the Bank of England and the Financial Conduct Authority backed down from preventing bankers from buying-out bonuses that new recruits forego by leaving their previous employers. The City regulators considered the move to stop bankers walking away from their jobs before any problems – such as rigging Libor or foreign exchange markets – were uncovered.Continue reading...