The Parliamentary Commission on Banking Standards has published its report on the UK banking sector, “Changing banking for good”. This hard hitting report covers a range of topics, but the Commission’s view on the role of pay is clear: “remuneration lies at the heart of some of banks’ biggest problems.”
In our analysis, we find that the recommendations in relation to remuneration go beyond existing regulation. We believe that the recommendations are, for the most part, sensible and the Commission has largely avoided headline grabbing but unworkable proposals. But focusing on the structure of remuneration is unlikely in itself to achieve the culture change that the Commission is looking for.
In our analysis we review the key themes emerging from the report including:
The full proposals concerning remuneration are summarised in our analysis.