News and Events

Directors' Pay and Bonuses

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A couple of interesting developments to report today...

First, the High Court has refused to order payment of a £175,000 severance payment agreed with the chief executive of an NHS Trust, on the basis that her performance was so bad that the Trust's decision to pay her a severance payment was perverse and ultra vires. See the article in today's FT -

[Thanks to Simon Jeffreys of CMS Cameron McKenna for telling me about this]

Second, the European Commission has set out principles for remunerating risk-based staff in financial institutions. The recommendations include the bulk of bonuses being deferred (to enable better judging of performance) and claw-back clauses in data proves to have been misstated. The Recommendations will be followed up by legislative proposals. See the Press Release -

[Thanks to Richard Linskell of Campbell Hooper for telling me about this]