The Association of British Insurers is set to hold a number of face-to-face talks the UK’s leading banks and senior investors in a bid to cut bonuses and individual payouts.
According to The Telegraph, the move follows a letter sent by the ABI to the banks earlier this month calling for them to fundamentally overhaul their structures and awards smaller bonuses.
The report says that while the banks have said they will take shareholders’ concerns into account in their reply, none have stated how they will address remuneration strategies to alleviate investor concerns.
The report says that the ABI has warned that it is no longer “business as usual” for the forthcoming payout season. It also called for banks not to pay new capital retention requirements solely through a cut in dividend payments as well as calling for remuneration committees to be prepared to scale back long-term incentive grants when needed.
Earlier this month it was revealed that the Bank of England’s new Financial Policy Committee could be handed powers to set restrictions on bank bonuses and dividends. The proposals were part of a discussion paper from the BoE and the FSA published in December.