Bankers' bonuses 'could be delayed for a decade'
Parliamentary Commission on Banking Standards says move would make bankers think more about their behaviour
Saturday 08 June 2013
Bankers’ bonuses could be delayed for up to ten years under proposals by a commission of MPs and peers.
British bankers normally receive their bonuses either immediately or after a one, two or three year wait, but a draft report of the Parliamentary Commission on Banking Standards seen by the Financial Times suggests they should be prevented from accessing the payouts for as long as a decade.
The proposals would make it easier for boards to reclaim bonuses should businesses that appeared successful in the short-term end up backfiring in the long run. Bankers would, it is claimed, be encouraged to think about the impact of their behaviour.
The commissioners, including former Tory Chancellor Lord Lawson and Archbishop of Canterbury Justin Welby, are set to meet early next week ahead of the report’s publication. Their findings could be released as soon as Thursday.
Chancellor George Osborne set up the cross-party commission following the Libor scandal in an effort to shake-up the culture in British banks.
The report is likely to include recommendations for tough sanctions on bankers who misbehave, as well as reforms to bankers’ overall pay.
The commission is also set to recommend that the Royal Bank of Scotland should be split into a “good” bank, shorn of billions of pounds of risky loans, and a “bad” bank, it was reported earlier this week.
Advocates claim it would encourage the “good” bank to lend to Britain’s small businesses, but the Government is against the idea as it would involve nationalising the bank at great cost to the taxpayer.
- 1 Replica Back to the Future Hoverboard released
- 2 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 3 Brixton squat flats now costing up to £3k per month show how out of control rent is in London
- 4 Gamers confess the worst things they've done in The Sims
Costa Concordia: Shipment of Mob drugs was hidden aboard cruise liner when it hit rocks off Italian coast, investigators say
Brixton squat flats now costing up to £3k per month show how out of control rent is in London
Iran nuclear talks: Prospect of deal with Iran pushes Saudi Arabia and Israel into an unlikely alliance
A new (old) cure for MRSA? Revolting recipe from the Dark Ages may be key to defeat infection
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Circa £45,000-£50,000 + benefits: Sheridan Maine: Are you a newly qualified ac...
£12 - £15 Hourly Rate: Sheridan Maine: Are you an experienced Accounts Assista...
£150 - £190 Daily Rate: Sheridan Maine: One of London's leading water supplier...
£30,000 - £35,000 Annual: Sheridan Maine: Are you a Management Accountant with...