BoE stops short of banning banker bonus buyouts

Buyouts of unpaid bonuses will not be banned under new rules from the Bank of England on Tuesday which set out how bankers can transfer pay perks to a rival firm. A bonus buyout is when a rival employer offers to honour a new hire's bonuses awarded by their former employer. Buyouts must be structured so that they vest no earlier than the awards they replace, meaning the deferred portion of the bonus cannot be cashed in any quicker, the BoE's Prudential Regulation Authority said in statement Most of a bonus is now deferred over several years to stop bankers being reckless to earn a bigger award.

BoE stops short of banning banker bonus buyouts source: http://finance.yahoo.com/news/boe-stops-short-banning-banker-bonus-buyouts-094120930--sector.html