FCA ends discretionary bonuses in new salary overhaul proposal
The FCA has made a move to propose an end to discretionary bonuses and narrow salary ranges to ensure employees receive a fairer remuneration.
FCA Chief Executive, Nikhil Rathi, announced that the regulator will be making some tough decisions which include the removal of bonuses as it has not been “effective at driving consistent individual or collective performance”. He added that these bonus payments “risks undermining confidence in the FCA” and currently “does not include some key elements that we ask of those firms we regulate”.
"It has become increasingly difficult to justify these one-off payments following the publication of two independent reviews, which found that we acted too slowly and with insufficient creativity and assertiveness to prevent harm to consumers," Rathi said.
To counteract this move, the FCA plans on replacing this scheme with an employment offer that aims to improve the base pay of those who meet objectives and are in lower pay brackets or paid at the lower end of salary ranges.
Some of these new measures for employees “clearly meeting or exceeding their objectives“ will include a 2% base pay increase from April 2022 and a second 2% base pay increase from April 2023, if performance is kept up.
The regulator is also proposing new pay bands – ten grade levels across five career families. For the very first time, there will also be London/Outside London pay gradings with those in the capital set to earn 20% more than those outside.
UK hosts Global Investment Summit as part of green industrial revolution
The UK Government has revealed the 12 businesses from across the UK who will showcase their latest green technologies and cutting-edge innovations at the Global Investment Summit. The summit will see over 200 investors and aims to drive billions of investments across the country.
Hosted by the Prime Minister Boris Johnson and supported by members of the Royal Family, the Summit will demonstrate Britain’s commitment to green industrial revolution in the UK and abroad ahead of COP26, and promote the UK as a top destination for foreign investment.
The Global Investment Summit supports Boris Johnson’s Ten-Point Plan to position the UK at the frontier as a science superpower and the world’s number one centre for green technology. The country’s work in this area will be key in reducing emissions and limiting the rise of global temperatures.
“The Global Investment Summit will put UK innovation on the map and demonstrate how we can use investment to nurture technological developments and propel our economy towards a more prosperous, exciting future,” Minister for Investments Gerry Grimstone said.
JAB secures leadership pipeline in series of promotions
In a bid to secure its next generation of leadership, JAB has announced further promotions which will see Joachim Creus become Managing Partner, Ricardo Rittes take on Senior Partner and Trevor Ashley set to become Partner following several partner appointments earlier this year.
The promotions will be effective immediately. Joachim Creus, Managing Partner and Vice Chairman, joined JAB in 2010 and has played a key role in building JAB into a global investment firm with more than $50 billion of managed capital across all its functions. He has been a major player in JAB’s major investments and expansion initiatives, including platform acquisitions and the creation of JAB Consumer Partners, formerly known as JAB Consumer Fund. Based in London, Creus will be Chairman Peter Harf’s successor and will continue to work and support JAB’s legacy anchor shareholder group.
“For the last 10 years Joachim has been side by side with me building JAB,” said JAB Managing Partner and CEO Olivier Goudet. “He has been at the heart of more than $100 billion worth of deals around the world and I am proud to see him take on this important role.” “Joachim is the architect of our governance structure. Through years of dedication and leadership he has earned the trust and respect of our entire ecosystem,” Harf said. “Our people are our greatest asset and, with Joachim helping to lead the JAB team, we will continue to create long term sustainable value.”