Bank pay scrutinised to establish if in accordance with EU cap

The Bank of England is scrutinising allowances awarded to top staff by banks in an effort to establish whether they are a covert way of avoiding a new European Union cap on bonuses, a senior official at the central bank said on Tuesday.

Reuters reports that from next year bankers' bonuses in the 28-country EU can be no higher than fixed salary, or twice that amount if a bank's shareholders give their approval. However, HSBC, Lloyds and Barclays are all considering giving top staff monthly or quarterly allowances to boost fixed pay.

About 80% of the bankers affected by the rule are based in London.

The Bank is toughening its stance on excessive compensation in response to public and investor criticism of a bonus culture blamed for contributing to the financial crisis and has asked its supervisory arm, the Prudential Regulation Authority (PRA), to study the proposed allowances.

To access the complete Reuters article hit the link below:

BoE to check banker allowances comply with cap rules

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