Hell, even Bernie Madoff could be out before some bankers get their bonuses!
Bloomberg reports that senior employees at U.K. banks may face a 10-year wait for bonuses under proposals put forward by a committee investigating the failures of the industry, which also recommended making 'reckless' management of lenders a crime.
A 'substantial part' of variable compensation for the highest earners at banks including Barclays and HSBC (and Standard Chartered and RBS) should be deferred for up to a decade to better align their interests with shareholders, the Parliamentary Commission on Banking Standards said in a statement Wednesday. It also proposed introducing a criminal offence for mismanagement, which could see executives of failed firms facing jail time.
'The potential rewards for fleeting short-term success have sometimes been huge, but the penalties for failure, often manifest only later, have been much smaller or negligible', the authors of the report said. “Banks should understand that many consider the levels of reward in recent years to have grown to grotesque levels at the most senior ranks'.
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