Wednesday, Aug 12, 2009
The fat cats are put on a diet
BBC: Banks given new rules on bonuses
New rules on how financial institutions should determine pay and bonuses for staff have been set out by the Financial Services Authority (FSA).
It wants to see bankers' pay deals linked far more closely with the long-term profitability of the banks.
The FSA says that bonuses should not be guaranteed for more than a year, and that senior employees should have their bonuses spread over three years.
Many believe that big bonuses led to excessive risk-taking at banks.
Posted by george monsoon @ 04:10 PM (425 views) Add Comment
3 Comments
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1. will said...
But if the FSA borrow money from the Banks to cover their own losses, they cannot be considered to be impartial.
2. paul said...
This is being watered down even as the BBC publishes details of it. The final legislation will be weak and probably voluntary.
In other words, useless. Just like the FSA.
3. vindicated said...
Watching this on the box last night.....'guidelines' only. Not rules as such. Utterly pointless. True to form.