Bonuses May Be Clawed Back After U.K. Bankers Move, BOE Says
- Proposal aims to strengthen link between bonuses and safety
- New employers can ask for waiver if clawback is unjustified
Pedestrians walk across London Bridge towards the City of London financial district, U.K., on Monday, Jan. 4, 2016. U.K. stocks got no respite in the new year, after their worst annual drop since 2011, amid investor concern over a slowdown in China, the biggest consumer of commodities.
Photographer: Simon Dawson/BloombergU.K. bankers may lose part or all of their bonuses even after they switch firms if they are responsible for losses at their previous employer, according to a Bank of England proposal.
The BOE’s Prudential Regulation Authority is asking for feedback on the plan designed to ensure that employees can be punished financially for excessive risk-taking that goes wrong, it said in a statement Wednesday. The PRA is suggesting that an employee’s contract with any new firm would allow a penalty to be applied should the old employer determine he or she engaged in misconduct.