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.
Bonuses paid out across the economy rose nearly 5% from last year to more than £40bn, which means they now make up the biggest proportion of workers' pay packages since before the economic downturn.
All companies with more than 250 employees should be forced to publish the salaries of their highest earners and told to consult their employees on executive pay, Vince Cable, the Liberal Democrat business secretary, will say on Sunday.
The bosses of Britain's 100 biggest listed companies are earning on average 143 times more than their staff, according to data that exposes the growing imbalance between how the nation's workforce and its business leaders are rewarded.
HSBC has given 15 of its top bankers “fixed pay allowance arrangements” worth £7.1m under a controversial new pay scheme designed to dodge tough new European Union rules on bankers’ bonuses.