Banks that have agreed to pay their executives a guaranteed bonus for more than a year risk heavy penalties, the head of the FSA warned in a letter sent to more than 40 chief executives within the financial services industry. Hector Sants said using long-term guarantees to lure star investment bankers could put them in breach of the authority’s new remuneration code. The new rules will cover all deals struck since the FSA first opened its pay consultation in March, meaning bankers who have recently negotiated guaranteed bonuses may see them revoked, the FT reported.

This entry was posted by Stacy-Marie Ishmael on Tuesday, July 21st, 2009 at 4:32 and is filed under Capital markets, People. Tagged with bonuses, executive pay, fsa, hector sants. Edit this entry.