The government is taking action to tackle what it deems to be unacceptable bank bonuses.
It is to consult on a remuneration disclosure service and, working with international partners, will explore the costs and benefits of a financial activities tax on profits and remuneration.
The government has also asked the Financial Services Authority as part of its forthcoming review of its remuneration code to:
- consider imposing more stringent requirements on the deferral and award of variable pay,
- examine mechanisms for strengthening the link between performance and remuneration to ensure incentives are aligned with the long-term performance of the firm;†
- and to consider how to vary capital requirements to offset risk in remuneration practices.
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