THE Financial Stability Board (FSB) is worried companies will be tempted to begin competing for talented staff by using disproportionate bonus deals again as the financial crisis fades.
In a review of remuneration practices across G20 countries published yesterday, the Switzerland-based body said its recommendations to reform pay in financial institutions had still not been implemented in several parts of the world.
While companies had generally overhauled remuneration policies in major financial centres like the US, UK, Germany and Hong Kong, the report found countries such as Singapore, India and Russia lagging.
The FSB, which advises central banks and regulators including the US Federal Reserve and the UK Financial Services Authority, will publish another review this time next year to keep the pressure on regulators and company boards.
It is understood the FSB is urging authorities in western economies to be vigilant as financial markets recover and top-performing employees become hot property once again.
An individual close to the matter said: “It’s a matter of making sure there’s no back-peddling of any sort”.