Carney moots penalties on bankers’ pay
BANKERS who commit crimes or make huge losses could have to give back their salaries, Bank of England governor Mark Carney proposed yesterday. This is a radical new step – previously only bonuses were considered fair game, with bankers forced to put the awards at risk for several years to ensure they stayed on the straight and narrow. “Standards may need to be developed to put non-bonus or fixed pay at risk,” Carney said in a speech in Singapore. “New European rules to cap bonuses to half of total pay have the undesirable side effect of limiting the scope for remuneration to be cut back,” Carney said. He also brought up the idea of introducing a “performance bond” as mentioned by New York Federal Reserve Bank President William Dudley.