Banks urged to restructure bonuses

7 December 2011

Major banks must reform their policies when it comes to issuing bonuses sooner rather than later in the wake of the global economic downturn.

That is according to the Association of British Insurers (ABI), which has called on companies operating in the UK's financial industry to alter their approach in terms of remuneration to avoid any repeat of the issues that arose during the recession.

Otto Thoresen, director-general of the ABI, yesterday (7 December) sent a letter to all lenders listed in the UK to urge them to re-think how they go about distributing bonuses and pay awards.

"It is essential that all banks take - and are seen to take - a responsible approach," he noted.

This comes after deputy prime minister Nick Clegg told the BBC's Andrew Marr Show that the government is planning a full review on executive pay in the early stages of 2012.

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development