Send
Print
acediscovery
The duration that executives have to wait for their complete compensation, known as the bonus deferral period, will be shortened from eight years to four years.
The modifications, sanctioned by the UK Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), are more substantial than those originally intended for 2024. At that moment, it was suggested to shorten the deferral period to five years.
According to the new regulations, partial bonus payouts for the majority of senior executives can occur from the first year instead of the third year, as stated by the Bank of England.
The updated regulations will be implemented on October 16 and will affect bonuses for 2025.
These adjustments ease the regulations established following the 2008 global financial crisis and align the UK more closely with approaches used in several other key jurisdictions, including the US.
source: ft.com
The modifications, sanctioned by the UK Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), are more substantial than those originally intended for 2024. At that moment, it was suggested to shorten the deferral period to five years.
According to the new regulations, partial bonus payouts for the majority of senior executives can occur from the first year instead of the third year, as stated by the Bank of England.
The updated regulations will be implemented on October 16 and will affect bonuses for 2025.
These adjustments ease the regulations established following the 2008 global financial crisis and align the UK more closely with approaches used in several other key jurisdictions, including the US.
source: ft.com
