Clawback - US bankers could lose bonuses

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US bankers could lose their bonuses up to seven years after receiving the payments if they misbehave or make big losses, under new rules proposed by six major regulators.

The Telegraph reports that under a set of plans inspired by similar rules in the UK and EU, American bank executives are set to have to wait longer to receive their bonuses, take more of the awards in shares rather than cash, and face “clawback” if they misbehave.

US regulators proposed a set of plans to limit bonuses for risky behaviour in 2011, but have been persuaded to make the rules much tougher as they seek to make bankers behave better in the wake of the financial crisis and a series of major scandals, such as Libor rigging and sanction-breaking.

The new proposed rules say bonuses must be “subject to adjustment to reflect actual losses, inappropriate risks taken, compliance deficiencies, or other measures or aspects of financial and non-financial performance.”

Hit the link below to access the complete Telegraph article:

US bankers could lose bonuses in clawback plan

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