In the UK, the Commons Library has issued a Standard Note on the remuneration of banking executives. Standard Notes are provided to Members of Parliament to support their parliamentary duties and are informative in nature.
In outlining the background to the issue, the Standard Note states that the level of boardroom pay, the way it is set and its complexity have become significant issues since the financial crisis in 2007. The way in which executives had been rewarded was seen as a contributing factor to this crisis. General concern about ‘corporate governance’ and the widening gap between ‘top pay’ and that of ‘ordinary workers’ has meant that there is a wider interest in the determination of executive pay beyond the banking sector. No single body or organisation has sole responsibility for regulating or reforming executive remuneration. As a consequence various streams of reform from different sources have affected the issue.
This Standard Note gives a summary of the main changes introduced by the principal organisations and bodies since 2008. It briefly describes the main elements of the directors’ remuneration packages and provides information on the amount of these packages for the Chief Executives, Chairmen and highest paid directors of the United Kingdom’s 5 largest retail banks. It also includes details of the remuneration of the five highest paid non board member executives of these banks.