Reforming banker pay easier said than done

|By:, SA News Editor

Looking to get around a new EU law limiting bonuses, at least a dozen banks - including HBC, and BCS - are considering "role based" monthly allowances to make up for money previously given as annual performance rewards. The total annual pay and bonus won't change, but it would comply with the law.

The new rule "clearly puts us at a competitive disadvantage to the American and Asian banks operating in our markets," says Richard Meddings, finance director at Standard Chartered (SCBFF). Not saying if his bank will pay these allowances, Meddings does say Standard Chartered "will continue to be very competitive with our staff."