City bonuses that dramatically outstrip base salaries would be relegated to history under a plan drafted by the Financial Services Authority.
With the fall-out from the banking sector's era of excess continuing, the watchdog has published its latest proposal to force improvements in risk control: a draft code of practice on remuneration policies.
Under the code, financial services companies would be expected to reward employees based on their long-term performance, not "solely on the results of the current financial year".
The FSA argues that base salaries should be a "sufficiently high proportion of total remuneration" to allow for flexible bonus policies, ensuring bonuses could be eliminated in lean times.
See Article.
Posts
