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Foreign banks sign up to bonus rules
LONDON’S foreign investment banks yesterday signed up to an agreement to commit to guidelines on pay laid out by the Financial Services Authority and the G20 in a meeting with City minister Lord Myners.
The 11 foreign banks will adopt guidelines including deferred bonuses, a higher percentage of payouts paid in shares and clawbacks to recoup bonuses paid on investments that turn sour.
Goldman Sachs, Citigroup, JP Morgan, Bank of America Merrill Lynch, Morgan Stanley, UBS and Nomura all agreed to abide by FSA rules beginning on 1 January 2010.
France’s BNP Paribas and Societe Generale, plus Germany’s Deutsche Bank, will comply with the G20 curbs and adopt the FSA’s rules voluntarily.