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Irate RBS bankers could challenge bonus clawbacks

08 March 2013

In an eFinancialCareers article, James Davies suggests that the investment bankers who have had their bonuses reduced, or even clawed back, in response to the breaches of others may challenge the decision as it could appear to be legally dubious. James argues that issues arise when bonus clawbacks are used as penalties rather than as recompense for damage done. RBS, which is 82 percent owned by the UK government, announced last week that it was cutting bonuses for 2012 and clawing back bonuses for previous years to cover its £390m Libor fixing fine.

In an eFinancialCareers article, James Davies suggests that the investment bankers who have had their bonuses reduced, or even clawed back, in response to the breaches of others may challenge the decision as it could appear to be legally dubious.

James argues that issues arise when bonus clawbacks are used as penalties rather than as recompense for damage done.

RBS, which is 82 percent owned by the UK government, announced last week that it was cutting bonuses for 2012 and clawing back bonuses for previous years to cover its £390m Libor fixing fine.

You can read James's comments in full on the eFinancialCareers website here.

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