Written question asked by Paul Flynn (Labour) on Wednesday, 15 January 2014, in the House of Commons. It was due for an answer on Friday, 17 January 2014. It was answered by Sajid Javid (Conservative) on Thursday, 23 January 2014 on behalf of the Treasury.

Banks: Pay

Question: To ask the Chancellor of the Exchequer (1) what criteria have been set by each bank in receipt of public money for qualification for senior staff bonuses; whether the Prudential Regulation Authority plays a role in the ratification of such criteria; and whether his Department has provided any guidance to the remuneration committees of such banks on bonus payments;

Answer

The Government has not received a specific proposal from the Royal Bank of Scotland (RBS) or Lloyds Banking Group (LBG) for this year’s remuneration round so it is not yet possible to evaluate fully the merits and implications for shareholders. It is important for taxpayers that such proposals are considered fully and properly.

The Government works closely with UK Financial Investments (UKFI) to ensure that the Royal Bank of Scotland and Lloyds Banking Group follow best practice in setting pay levels. UKFI engages as a shareholder to ensure incentives are based on long-term, sustainable performance which rebuilds the businesses of the banks and protects value for the taxpayer as shareholder. UKFI will seek to ensure that neither bank pays any more than the minimum necessary.

The rules governing remuneration, including bonuses paid to senior bank executives are set out in the Prudential Regulation Authority’s and Financial Conduct Authority’s Remuneration Code:

http://fshandbook.info/FS/html/handbook/SYSC/19A

Secondary information

Type: Written question
Reference: 183487; 574 cc308-9W
Session: 2013-14
Subjects: Banks Pay
Link: View this Written question on www.publications.parliament.uk

Banks: Pay

Secondary information

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