• Text size      
  • Send this article to a friend
  • Print this article

Plan to strip bankers of bonuses

RECKLESS bankers could be stripped of bonuses even after they have cashed them in, under plans set out by the Bank of England.

The Bank is proposing new rules to toughen up the remuneration code, which would see employment contracts changed to allow for clawback of bonuses.

Regulators have the power to force firms to halt bonus payments that have not yet been cashed in, but once paid they are immune from clawback.

The Bank is carrying out a two-month consultation on the new clawback plans where there is evidence of employee misbehaviour or significant error, where a firm or business division has suffered a material financial hit, or where there has been failure in risk management.

It also wants to ensure the rules apply to those indirectly responsible, such as bosses accountable for the behaviour of their staff, , and those who failed to take steps to identify or address misconduct.

Contextual targeting label: 

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.