Consultation on clawing back bonuses
Close date: 13 May 2014
The Bank of England consults on proposals to require all firms authorised by the Prudential Regulation Authority to amend employment contracts so that bonus awards that have been vested can be clawed back from individuals where certain conditions are met, for example where there is evidence of employee misbehaviour. Clawback would apply to a wider range of employees than those who are directly at fault, including those who should have been reasonably expected to be aware of the misconduct but failed to take steps to address it. Clawback would apply to all vested awards up to six years after vesting.
Consultation document: Clawback