Clawing back bonuses is unenforceable

Pile Of Coins

Britain's banking lobby has warned that proposals to claw back bonuses up to 11 years after they have been awarded would be unfair and potentially unenforceable.

The Daily Telegraph reports that in a response to proposals from the Bank of England’s Prudential Regulation Authority (PRA), the British Bankers’ Association (BBA) said some of the suggestions violated 'fundamental and long-standing' tenets of British law, and were 'going beyond what could be considered as fair and reasonable'.

In March, the PRA launched a consultation on tough new pay rules that could see banks clawing back bonuses six years after they have been paid if bankers misbehave or if their company enters a “material downturn” in financial performance.

With regulators also looking at bonuses not vesting until five years after they have been awarded, this would mean they could be clawed back as much as 11 years later.

To access the complete Daily Telegraph article hit the link below:

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