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 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
PornHub turns masturbation into energy in bid to save the planet
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
£9 per hour: Recruitment Genius: This role is based within a small family run ...
£28000 - £32000 per annum: Recruitment Genius: This Design and marketing agenc...
£46000 per annum: Recruitment Genius: This property investment firm are lookin...
£18000 - £35000 per annum: Recruitment Genius: This company specialises provid...