FCA bosses give up their bonuses over insurance scandal December 10, 2014 The Financial Conduct Authority (FCA) said today directors including Martin Wheatley, its chief executive, will give up their bonuses as a result of an investigation into a botched press briefing over insurance. The organisation said today that Wheatley, director of supervision Clive Adamson, director of communications and international Zitah McMillan and director of markets David [...]
Morgan Stanley set to shell out more bonuses upfront December 6, 2014 The good time are back for finance giant Morgan Stanley which has announced it will doling out more its bonuses to employees upfront thanks to the company's healthy condition. The move aligns Morgan Stanley with many of its competitors and will raise its fourth quarter compensation by around $1.2bn. The investment bank said that 50 [...]
Bonus season stunts City jobs market growth November 30, 2014 City hiring slowed in November as firms and employees ready themselves for the bonus season. However, hiring activity was still 29 per cent higher than at the same time last year, according to figures released today by recruiters Astbury Marsden. The number of jobs created in November was 3,212, down five per cent on October’s [...]
EU beats UK in bonus cap legal battle November 20, 2014 Britain’s standing in the EU is lower than ever, and the UK yesterday admitted defeat in the latest spat. Should Britain ever have challenged the bonus cap? The Bank of England thinks the bank bonus cap does more harm than good. British institutions such as Barclays took a pummeling in the US when they cut bonuses, losing [...]
George Osborne calls off challenge to EU bankers’ bonus cap November 20, 2014 The UK government has withdrawn its legal challenge to the EU bankers’ bonus cap, George Osborne admitted today. The chancellor admitted the challenge was “unlikely to succeed” after an advisor to the European Court of Justice rejected the UK government’s argument. The EU legislation limits bonuses to 100 per cent of a banker’s [...]
Banker bonus cap row: Lawyers react to the European Court of Justice bonus cap rebuffal November 20, 2014 The European Court of Justice (ECJ) has rebuffed George Osborne's battle against banker bonus caps – but what do the City's lawyers think of it? To recap, today Niilo Jääskinen, an advocate general at the European Court of Justice's (ECJ), said the bonus caps – which limit bankers' bonuses at 100 per cent of [...]
The European Court of Justice has dealt a blow to George Osborne’s banker bonus cap challenge November 20, 2014 The European court should reject George Osborne's challenge to the EU's cap on banker bonuses, according to one of its senior advisors. Niilo Jääskinen, an advocate general at the European Court of Justice's (ECJ), has said that all the UK’s pleas should be dismissed and that the action should be scrapped. He said that the [...]
Is Mark Carney right that clawback may need to cover all bankers’ pay, not just bonuses? November 17, 2014 Alex Edmans, a finance professor at London Business School and Wharton, says Yes. Pay packages should ensure that executives act in the long-run interest of their firms. Short-run bonuses incentivise bankers to boost near-term earnings at the expense of long-run value – such as writing subprime loans or manipulating rates. Clawbacks will deter myopic actions, [...]
Honey, I‘ve shrunk your bonus November 10, 2014 Bonuses on Wall Street could be down as much as 10 per cent for some professionals this year, according to a closely watched survey by consulting firm Johnson Associates. Overall, the firm expects 2014 bonuses to be flat compared with last year. However, the size of bonuses varies significantly across the industry. Stock and bond [...]