Investors worried bonuses will eat into company cash
The Association of British Insurers has written to remuneration chairman at the UK’s top 350 firms warning against big bonuses and paying the government’s 50% top up tax, the FT reports.
Some banks have indicated they will top up bonus payments to cover the new tax.
Investors are concerned that banks will absorb the supertax on bonuses at the expense of dividends and earnings, rather than cut pay-outs or pass the tax on to employees, the FT said.
The ABI said the number of meetings companies had to hold because of pay disagreements increased to 178 last year, up from 149 in 2008.
