Bonuses: pay dirt

The bonus bonanza is over. The Financial Services Authority, the UK regulator, has told financial firms that pay policy must be consistent with good risk management. The principle will be enforced and clear guidelines for adhering to it will be laid down. But tough action earlier might have avoided much grief – and the market will curb pay for a while anyway. Principle 4 of the FSA’s 13 Principles for market conduct says that a firm must maintain adequate financial resources, including capital ...