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ABI and banks set for talks over “out of control” bonuses

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.


Standard Life Investments chairman steps down

Standard Life Investments chairman Colin Buchan is to step down from 2012 and will be replaced by non-executive director John Paynter. Buchan was appointed chairman in 2008 and has been a director of Standard Life Investments since 2002; he will remain as a director and continue to chair the investment committee. Paynter has been a […]

CIPD: Unemployment set to rise to 2.85m in 2013

Government hopes that private sector job creation would offset job losses in the public sector will fail to be realised next year as unemployment continues to rise, according to the Chartered Institute for Personnel and Development. The human resources industry body also says that with a “relatively benign” outcome to the sovereign debt crisis and […]

Japan’s Nikkei 225 index closes at 29-year low for 2011

Japan’s benchmark Nikkei 225 index has closed for the year at its lowest level since 1982. Despite managing a 0.67 per cent upturn by the end of trading, the index closed the year at just 8,455.35. The index has not looked so troubled since 1982 when it closed the year at 8,016.67. The Bank of […]


Pensions roundup 2011: Webb wobbles over auto-enrolment

Financial advisers and the rest of the pension industry have faced two major challenges in 2011 – adjusting to fast-changing Government reforms and regulatory rules and navigating clients through an economy seemingly intent on punishing savers. I have resisted the temptation to talk about 2011 as being a year of unprecedented change because most of […]

Oil industry: only the fittest will survive

The actions of OPEC have forced the oil supply to fall and producers to cut costs and rationalise, says Richard Hulf In an interview with journalist Alexis Xydias, Richard Hulf, manager of the Artemis Global Energy Fund, explains the impact of the fall in the oil price on energy companies. Alexis also quizzes Richard on […]


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. What about the FSA’s out-of-control bonuses? Is anybody minded to try getting anything done about those? Certainly, the NAO isn’t.

  2. Instead of paying bankers’ bonuses in shares, pay them in some form directly related to dividends.

    Than if shareholders get nothing, bankers also get nothing. QED

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