Daniel Parker shares his views with The Banker on senior banker bonus proposals
In a recent article for The Banker, Daniel Parker, Senior Associate in our Employment and Partnerships team, shared his thoughts on the Financial Conduct Authority and Prudential Regulation Authority’s proposals to make the current bonus regime more favourable for senior bankers.
The proposed changes aim to make it quicker for senior bankers to receive their bonuses. This move is designed to make working at UK banks more attractive in comparison to US and EU counterparts.
Daniel highlights that while these changes aim to enhance competitiveness, their impact will take time to assess: “The proposals will need to filter through to revised remuneration policies and awards, before showing in hiring trends”. He emphasises that these reforms, including shorter bonus deferrals, align with the UK’s broader goal to attract top talent. However, Daniel cautions that these changes could risk re-igniting pre-2008 practices which were designed to reduce excessive risk taking.
He also explains that while banks may begin to manage individual’s expectations on salary growth, any efforts to reduce salaries are unlikely to be received well and should be carefully managed to avoid unfair dismissal claims.
You can read the full article here.
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