Asked by: Baroness O'Grady of Upper Holloway (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the announcement by the then Chancellor of the Exchequer on 23 September 2022 to remove the cap on bankers' bonuses (HC Deb col 936), what consideration they have given to curbing any risk-taking in the financial sector which may occur as a result of the removal of that cap; and further to the finding in the High Pay Centre report Analysis of UK CEO Pay in 2022, published in August, that FTSE 100 CEO pay rose by 16 per cent in 2022, what consideration they have given to curbing the pay of senior staff in the financial sector, including by implementing the then Prime Minister's plans for the reform of boardroom governance in July 2016 by ensuring worker representation in boardrooms.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
As the Chancellor set out in the Edinburgh Reforms last year, the government remains committed to high standards and to a robust regulatory environment that safeguards the UK’s financial stability.
The PRA and FCA, who are responsible for rules on remuneration, are operationally independent from government and have statutory objectives to promote safety, soundness, and effective market functioning.
The removal of the bonus cap is entirely a decision by the independent regulators.