BoE stops short of banning banker bonus buyouts

[LONDON] 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 where an rival employer offers to buy prospective employee's bonuses promised by their old employer.

The BoE's Prudential Regulation Authority said in statement that buyouts must be structured so that they vest no faster than the awards they replace, meaning the deferred portion of the bonus cannot be cashed in any quicker.

REUTERS