BoE floats bonus clawback plan
The Bank of England today proposed the Prudential Regulation Authority (PRA) be given new powers to claw back bonuses from bankers found to have misbehaved – and from those who fail to intervene when others misbehave.
Under the plans, all firms authorised by the PRA would be required to amend employment contracts to allow bonuses that have already been "vested", or paid, to be recouped under certain conditions. The PRA already has a power of ‘malus', which allows it to prevent the payment of a
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