Bailed out banks banned from bonuses -- but not yet.

The article reports on the decision of regulatory authorities in Great Britain to ban bailed out state-owned banks from paying bonuses to senior management, increasing bonus deferral periods and restricting clauses on recovery of compensation, or claw back. Measures in the final rules include the setting up of bonus pools based on prudent evaluation instead of a simple revenue or profit-based approach. The alignment of the compensation regime with the Senior Managers Regime is discussed.