The recent clawback laws being discussed and introduced in the UK and the US differ quite markedly and represent two almost entirely different approaches to recovering “erroneously” awarded incentive-based compensation. So which flavour do you prefer? One shouldn’t forget, of course, that the PRA’s provisions regarding clawback are only one half of a two pronged … Continue Reading
Bankers working in the UK will be the first group of employees subject to mandatory clawback requirements in relation to their vested variable remuneration. This follows the Bank of England’s Prudential Regulatory Authority’s (PRA) policy statement on clawback. From 1 January 2015, any awards made by firms subject to the Remuneration Code (namely banks, building societies … Continue Reading
The topic of clawback, and indeed malus, has been a bit of a strange animal to date. You know what it is when you see it, but trying to adequately describe when it is triggered and how it takes effect is a little more challenging. The Financial Reporting Council’s consultation paper on reforming the UK … Continue Reading
