On 22 July 2020, the FCA published a letter it had sent to Remuneration Committee Chairs. In the letter the FCA sets out its findings and observations from the 2019/20 remuneration round and how it plans to assess firms’ remuneration policies and practices throughout 2020/21.
Among other things the letter notes that during this time of uncertainty and change, the FCA expects remuneration policies and practices to remain aligned with the firm’s long term business plans, especially if these are under review or undergoing change, and continue to support and reinforce a healthy culture at the firm. FCA supervisors will continue to assess how remuneration policies have evolved in response to the impact of the COVID-19 pandemic including the impact on bonus pools and individual remuneration outcomes. The FCA will continue to ask Remuneration Committee Chairs how they have satisfied themselves that their firm’s remuneration policies reinforce a healthy culture at their firm and promote the right behaviours. The FCA expects Remuneration Committee Chairs to consider how their firm’s remuneration policies promote equality of opportunity and to ensure that diversity and inclusion is embedded within the firms approach to rewarding individuals, avoiding unconscious bias.