Focus on Clawbacks

Banks are coming under pressure to seek to clawback bonuses paid to executives responsible for businesses that have faced fines and compensation requests related to the misselling of payments protection insurance.

Both the Financial Services Authority and Which? Magazine have called on the institutions to comply with the FSA’s Remuneration Code. This requires clawbacks to be triggered if there has been a material failure of risk management or a downturn in performance.

Barclays and Royal Bank of Scotland are thought to have stopped selling these policies by the time the new regulations came into force.

Lloyds is seeking to clawback some of former CEO’s, Eric Daniel, bonus.