UK banks subject to the most stringent pay rules in Europe
23 June 2015
Helen Beck, partner in Deloitte’s financial services reward practice, said: “The PRA has clearly listened to feedback from UK banks. Its proposals for a tiered approach to deferral periods, where the length of deferral increases from three to seven years according to an individual’s risk taking responsibility, is clearly less problematic and severe for banks than originally proposed. Pay arrangements for most junior risk and compliance staff are likely to remain unaffected as a result, which is helpful. The PRA’s proposals for a seven year minimum deferral period, in addition to the extension of clawback periods to ten years, goes much further than the European Banking Authority’s latest proposals. This will mean that board executives of UK banks will be subject to the most stringent pay rules in Europe from next year.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.