Steve McCabe – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Steve McCabe on 2016-09-08.

To ask Mr Chancellor of the Exchequer, if he will make it his policy to discourage the financial sector from using performance bonuses in his Autumn Statement.

Simon Kirby

The UK is at the forefront of global efforts to tackle unacceptable pay practices in the banking sector and has the toughest regime on pay of any major financial centre.

Firms are now required to have policies in place to defer, reduce, cancel or clawback bonuses in the event that poor performance or misconduct comes to light and the Government expects firms to be proactive in their application of these policies. Used in this way bonuses can be an effective incentive for staff to act in the long term interests of a business.

The Government’s efforts have resulted in a restructuring of pay including a significant reduction in cash bonuses, and a better alignment of risk and reward in the financial sector.