FCA - Final Rule - PS15/16 Executive Compensation

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UK Executive Compensation
Proposal Date Comment Deadline Final Rule Issue
Jul 30, 2014 October 31, 2014 June 23, 2015

On June 23, 2015 The FCA and the PRA issued a joint Statement on Executive Compensation that institutes new rules.


The aftermath of the 2008-2009 financial crisis initiated many governments' regulatory agencies to begin to revisit the subject of executive compensation. Other legislation like CRD IV and other implementations of Basil III have sought to decrease reckless risk taking so as to force risk takers to think more long term.

Final Rules Summary

The final rules include the following:

  • Senior Management and risk takers will not be able to receive bonuses until 7 years after the performance period
  • Non-Executive directors will be barred from getting bonuses
  • Bonuses can be clawed back for 7 years, and up to 10 years for senior managment
  • Companies that are supported by the government cannot issue bonuses[1]

Rule as Published


  1. Regulators launch new rules governing bankers' bonuses. BBC. Retrieved on June 23rd, 2015.

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