Senior Executive Remuneration - Malus & Clawback Provisions Explored with Carol Davis QC

Introduction

Malus and clawback provisions in incentive plans were introduced for financial institutions, largely in response to the financial crisis of 2008.

There was a widespread belief that inappropriate remuneration practices contributed to the crisis by encouraging excessive risk-taking.

The FCA and PRA Handbooks provide that malus and clawback provisions must be incorporated in the remuneration policies of senior managers and other senior individuals so that the variable remuneration is only paid if it is sustainable according to the financial situation of the firm as a whole and justified on the basis of the firm, the business unit and the individual concerned.

In this new virtual classroom session, you will learn how to deal with the pitfalls that arise when implementing malus and clawback and the areas which will lead to challenge and scrutiny by the Courts.

The session is aimed at in-house counsel and employment lawyers advising financial institutions.

What You Will Learn

This live and interactive session will cover the following:

• What malus and clawback policies are designed to do and to whom they apply
• How to draft, incorporate and communicate effective malus and clawback policies
• What events trigger malus and clawback and how far they extend, particularly in relation to non-financial misconduct
• How malus and clawback can be challenged by the senior executive
• Practical tips for avoiding challenge

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.