Global authority’s pay plan draws opposition from banks that call it 'prescriptive'

3 August 2018 9:30pm
Major banks are opposing the Financial Stability Board’s proposal to improve firms’ reporting of compensation practices such as bonuses and clawbacks, arguing that oversight of employee incentives is best left to each jurisdiction.

“Individual regulators and financial institutions need flexibility to tailor policies to the unique conditions and cultures of individual markets,” international banking groups said.

The Bank Policy Institute, chaired by Bank of America Chief Executive Brian Moynihan, called for the proposed nonbinding guidance to be retracted.

Although the regulatory plan says it isn’t intended to be “one size fits all” or “prescriptive,” the groups used those terms to describe it.

The international groups’ letter was written by the Global Financial Markets Association and the Institute of International Finance. Among their members are JPMorgan Chase, HSBC, Mitsubishi UFJ and Credit Suisse.