Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Business performanceEconomics, government & businessHR practice

Employers’ Law Editor’s comment

by John Charlton 15 Sep 2009
by John Charlton 15 Sep 2009

The ink hardly had time to dry on the Financial Services Authority’s (FSA) code of practice on banking and financial sector pay and bonuses before it was overtaken by events.

The Code on Reforming Remuneration Practices in financial services sets out to reduce risk at 26 large banks and financial firms by linking the bonuses and overall compensation of high-earners to their companies’ performance over time. Lest we forget, the code was created to assuage public anger, voiced by politicians, about the apparently huge earnings of some banking and financial industry senior executives no matter how well their employers performed.

We cannot be certain how effective the code will be in achieving its aim, but it seems certain that it will be judged far too light a touch by the public, and that politicians will pander to the electorate’s disquiet about the return of big bonuses and pay rises.

Senior politicians such as Lord Mandelson and George Osbourne are making noises about introducing curbs on bankers’ pay and bonuses, especially at those institutions that were saved by the taxpayer during the past year or so. How they plan to achieve this will be worth waiting to see, as interfering with employment contracts would make splicing the Gordian knot seem like child’s play.

Yet, if votes are to be won, there is little politicians won’t do.

That aside, the focus of the code on 26 big institutions will only encourage team moves and poaching in the City. The word among employment lawyers plying their honest trade in the Square Mile is that defections are prompting a significant rise in employer actions against those they see as the disloyal.

Finally, the code also calls for affected employers to pay due heed to equal pay and non-discrimination in their remuneration structures. What has this to do with minimising risk?

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

One for mystic Mandy, I think.

John Charlton, editor

John Charlton

previous post
Double E-Learning Award shortlist for Brightwave
next post
FSA firm on pay and bonuses

You may also like

Government publishes ‘roadmap’ for Employment Rights Bill

2 Jul 2025

Fall in entry-level jobs linked to rise of...

30 Jun 2025

Bank of England says NIC rise is dampening...

27 Jun 2025

Bioethanol plant closure could lead to 4,000 job...

26 Jun 2025

When will the Employment Rights Bill become law?

26 Jun 2025

With HR absence rising, is your people team...

24 Jun 2025

Skills receive £1.2bn boost in new industrial strategy

23 Jun 2025

Employees want more upskilling and apprenticeships to narrow...

20 Jun 2025

UK job market shows signs of resilience

20 Jun 2025

HR and employment leaders feature in King’s birthday...

16 Jun 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+