UK Treasury to hold session on remuneration

LONDON – As part of its wider inquiry into the global banking crisis, the UK Treasury Committee has announced details of an evidence session on incentive structures (including remuneration policies) within financial institutions, and their potential effect on financial stability, both within firms and across the industry.

The evidence session will take place on Wednesday, November 19. Details of witnesses will be announced early next week.

The Committee would welcome written evidence on issues including the relationship between the structure of remuneration packages and excessive risk-taking within financial institutions; how incentives within financial institutions can best promote long-term sustainable growth and financial stability, both at the institutional and system-wide levels; what approach the Financial Services Authority should take with respect to remuneration within financial institutions; the role of remuneration committees and shareholders in providing oversight of compensation packages within financial institutions; the need for a co-ordinated international approach to executive remuneration in the banking sector; and good practice regarding the disclosure and transparency of compensation arrangements within financial institutions.

All written evidence should reach the Treasury Committee by 4pm on Thursday, November 13.