Over the past 4 years, the boards of financial firms have focused on improving risk governance and controls and establishing firmer oversight of the compensation and bonus pool allocation processes. The last 18 months, however, has seen a significant increase in pressure many financial services boards now face:
- Challenges with uncompromising regulators in their assessment of individual board members (both for Group and Subsidiary Boards) making it harder for banks to attract non-executive candidates
- Zero tolerance and large fines for conduct failures paired with increased scrutiny from conduct regulators across Europe and the US leading to reputational damage, board resignations and large provisions required in the financial accounts of individual institutions
- Pressure from all stakeholders to increase resilience and strategic sustainability in the light of continued global imbalances and volatility (e.g. G-SIBs, recovery and resolution plans, ring-fencing of business and geographic activities, etc.)
