The Australian financial markets may see new phase in the banking bonuses in the future. According to Wall Street Journal, the Australian Prudential Regulation Authority is thinking to analyse past annual bonuses if misconduct is revealed.
According to the news, the financial regulator wants to defer parts of bank bonuses for several years and change the structure of bonuses, with at least half of variable pay measured against risks other than financial performance. The new measures are aimed at aligning executive pay with the interests of customers, shareholders and others with stakes in the financial industry.
The remuneration draft was released on Tuesday and it is expected that the new rules would come into force in 2021.