Business Irish

Saturday 25 March 2017

Banks defying pay rules face 'enforcement'

BANKS who defy guidelines on executive pay could face "enforcement action" and be forced to stump up extra capital reserves, a senior official in the Financial Regulator's office warned yesterday.

Jonathan McMahon, the number two to Financial Regulator Matthew Elderfield, outlined the no-nonsense approach to banking pay yesterday as he unveiled the "new approach" to financial supervision in Ireland.

The Financial Regulator's office is carrying out a wholesale review into how bank boards scrutinise their "remuneration priorities" and how those salary policies influence the level of risk-taking at different banks.

"Clearly, remuneration sits at the centre of this [financial] crisis, not just here but internationally," Mr McMahon said yesterday, pointing to banks' practices of rewarding risk over "prudent management".

Pay in the seven banks

Irish Independent

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