Europe’s top banking regulator is cracking down on major banks, warning them they should not try to get around the EU’s cap on bonuses by handing their staff extra payments.
The US hedge fund that forced Argentina to default on its debts has paid one of its London-based bosses more than £38m – a sum 1,437 times greater than the average UK salary of £26,500.
Now for some cheery news from the banking sector.
Lloyds Banking Group has fired eight staff and withheld £3m of bonuses following their “unacceptable” actions, which led to the bailed out bank being fined for Libor rigging.
Banks handing staff “allowances” to circumvent Brussels’ bonus cap face close scrutiny of their pay deals as a result of new guidelines being drawn up by Europe’s top banking regulator.
All companies – not just banks – will have to be able to claw back directors' pay and prove bonuses are linked to performance under a new City code published on Wednesday.
Eight companies that have drawn shareholder protests over their bosses' pay for the past two years should open talks with investors to avoid a third year of rebellion, pension funds say.
Banks seeking to circumvent the EU's cap on bonuses for top staff could face further action from European regulators, a senior official has warned.