Treasury finally closes bonus loophole to firms on Covid-19 loans | Nils Pratley
by Nils Pratley from on (#53NRW)
State lending should promote corporate survival, not underwrite executive pay packets
About time too: the Treasury has finally flexed its muscles and said large companies using government and Bank of England-backed loan schemes cannot also pay cash bonuses to directors or dividends to shareholders.
The restrictions are really just an act of common sense: state loans should promote corporate survival, not underwrite executives' pay packets or investors' distributions. Most boards probably grasped the point, but the job of the Treasury is to ensure the door is bolted firmly against the devious and the greedy. It's astonishing it has taken this long for a bonus ban to be adopted.
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