Jump to content
House Price Crash Forum

Fsa Says Failed Bank Bosses Could Have Pay Clawed Back


Recommended Posts

0
HOLA441

http://www.bbc.co.uk/news/business-11947674

The bosses of failed banks could face having two years' pay clawed back from them, the chairman of the Financial Services Authority (FSA) has said.

Lord Turner told the BBC's business editor, Robert Peston, that he was attracted to imposing such a sanction.

He said the rule - which is already in place in the US - would discourage banks from taking excessive risks.

His comments come after Vince Cable attacked the FSA for not releasing its report on Royal Bank of Scotland (RBS).

Considering the pay some of these people get this isn't much of a threat.

http://en.wikipedia.org/wiki/Fred_Goodwin

Goodwin was at RBS for 7 years so he'd still have 5 years salary for running the bank into the round requiring the fairy taxpayer to come and rescue it.

Link to comment
Share on other sites

1
HOLA442
2
HOLA443
3
HOLA444
4
HOLA445

If they make bankers return two years pay then the banks will just triple their pay the next year. They have already had their pay doubled to wipe out any moves on their bonuses.

Lord Turner is a windbag. He says a lot but none of it EVER comes to anything.

All too true. It'll remain a disaster for as long as bankers are able to effectively pay themselves whatever they feel like out of a system that has to pass money through their hands. It's large-scale hands-in-the-till, that's all.

Link to comment
Share on other sites

5
HOLA446

If they make bankers return two years pay then the banks will just triple their pay the next year. They have already had their pay doubled to wipe out any moves on their bonuses.

How about if it became law that bankers' pay plus bonuses should not exceed the percentage paid out in annual dividends to shareholders?

So, if dividends go up by, say, 5 percent, then the salaries could rise by up to 5% the following year. .... and if dividends go down, then salaries should also reflect the percentage fall.

Link to comment
Share on other sites

6
HOLA447

How about if it became law that bankers' pay plus bonuses should not exceed the percentage paid out in annual dividends to shareholders?

So, if dividends go up by, say, 5 percent, then the salaries could rise by up to 5% the following year. .... and if dividends go down, then salaries should also reflect the percentage fall.

OK I'll accept that as long as you also apply it across all firms not just banks.

Get the shareholders to vote for it.... oh hang on.... they never have enough votes to stop excessive pay do they?

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information