UK banks 'in talks over new bonus criteria'

4 January 2011

Leading British banks are believed to be debating performance criteria for employee bonuses, as the country's financial sector adapts to a range of new measures aimed at tightening oversight.

The Observer reported over the weekend that the UK's four largest banking groups - Lloyds, Barclays, Royal Bank of Scotland and HSBC - have recently been in talks with major investors about bonus qualifications for 2011.

PricewaterhouseCoopers remuneration partner Jon Terry said: "This is quite radical for directors of banks. When we get to this year's annual meetings we are going to see different rewards put to shareholders."

Any changes will need to be ratified by the firms' respective stakeholders, who will be balloted on the issue at this year's annual general meetings. Regulators are also likely to take a keen interest to ensure new measures comply with the relevant rules.

The news came after Reuters revealed that the Association of Chief Executives of Voluntary Organisations had called on the government to tax performance-related payouts and donate the proceeds to charity groups.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development