FCA chief executive Andrew Bailey could have to forgo a bonus if the regulator is deemed to not have dealt with the collapse of mini-bond provider London Capital & Finance effectively.
The FCA’s independent review into the failure of the firm is likely to inform performance bonus decisions for the regulator’s directors from next year.
In its annual report published today the FCA said the Renumeration Committee will consider the outcome of the review when it decides on performance-related bonuses in February 2020.
If the outcome of the review is not known by then a decision will be “deferred” until the outcome is known, the FCA said.
Senior directors were eligible to be considered for a performance-related award up to a maximum of 35 per cent of average base salary applying during the previous year for the period under review – 1 April 2018 to 31 March 2019.
Non-executive directors were not eligible to be considered for an award.
Source: FCA Annual Report and Accounts 2018/19
Bailey was awarded a performance bonus of £75,000 for 2018, of which £30,000 (40 per cent) was paid in May 2018. The remaining £45,000 (60 per cent) was held in deferment and was paid in March 2019 following approval by the Remuneration Committee.
For the performance year ending in March 2019 Bailey was awarded a performance bonus of £68,000, of this £27,200 (40 per cent) was paid in March 2019, the remaining £40,800 (60 per cent) will be held in deferment until March 2020 and paid at the discretion of the Remuneration Committee.
The FCA chief executive was the highest-paid director for 2019 and 2018.
Performance bonus decisions are made by the Remuneration Committee in February each year.