Major shareholders are preparing to meet top UK bank executives "behind closed doors" in the new year to thrash out concerns over excessive pay ahead of the crucial bonus season.
The Association of British Insurers (ABI) is understood to be planning a series of face-to-face meetings between investors and the UK’s top five banks in January to urge them to curb “out-of-control” bonuses and cut individual payouts.
The move follows a strongly-worded letter from the ABI sent to the banks in December, which demanded they fundamentally overhaul their remuneration structures and award smaller bonuses.
All the major banks are believed to have replied to the letter with a written promise that they will take shareholders’ concerns into account when deciding bonus payouts in a few months’ time.
However, the replies are understood to have lacked any detail about how banks will actually change remuneration strategies to address investors’ concerns.
Shareholders want assurances that banks will tackle the “inequitable” balance between investor returns and the returns given to employees, with what they see as “too much value” being placed on rewarding staff. (AtW's comment: about time - I've been saying this for a very long time now and only got called commie for that
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More from the source: Banks and ABI to hold talks over 'out of control' bonuses - Telegraph
The Association of British Insurers (ABI) is understood to be planning a series of face-to-face meetings between investors and the UK’s top five banks in January to urge them to curb “out-of-control” bonuses and cut individual payouts.
The move follows a strongly-worded letter from the ABI sent to the banks in December, which demanded they fundamentally overhaul their remuneration structures and award smaller bonuses.
All the major banks are believed to have replied to the letter with a written promise that they will take shareholders’ concerns into account when deciding bonus payouts in a few months’ time.
However, the replies are understood to have lacked any detail about how banks will actually change remuneration strategies to address investors’ concerns.
Shareholders want assurances that banks will tackle the “inequitable” balance between investor returns and the returns given to employees, with what they see as “too much value” being placed on rewarding staff. (AtW's comment: about time - I've been saying this for a very long time now and only got called commie for that
)More from the source: Banks and ABI to hold talks over 'out of control' bonuses - Telegraph
