Financial services executive salaries subject to claw-back
More financial institutions are using claw-back provisions when dealing with the remuneration of senior executives, according to the latest Deloitte Global Risk Management Survey.
The survey, covering 86 institutions and released this week, revealed the clawback provisions as one of the means by which financial services companies are seeking to adjust incentive compensation plans to ensure they don't inadvertently encourage excessive risk plans.
However it also revealed that while more company boards were reviewing the compensation plans of directors, this still represented less than half (49 per cent) of the companies surveyed.
It found that other actions were being more seriously utilised, with 83 per cent of institutions now saying they use multiple incentive plan metrics, 73 per cent requiring that a portion of the annual incentive be tied to overall corporate results, and 58 per cent having deferred payouts linked to future performance.
The survey said that more institutions also reported using claw-back provisions, with 41 per cent of respondent companies saying they did so in 2012 compared to just 26 per cent in 2010.
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