The Prime Minister's Office has announced the Government's plan of action to end the "short-term bonus culture" in the banking sector. The plans are based on principles of fairness that:
- banks should not reward those who fail or who are associated with a loss;
- bank bonuses should be based on long-term sustainable performance; and
- banks must have the right to claw back bonuses from their staff based on subsequent performance.
The plan also caters for regulators to consider banks' pay and bonus structures in the course of supervising banks.