Centrica faces heat over handing fat bonuses to bosses while slapping prepayment meters on struggling households battling soaring energy bills. The energy giant insists hefty payouts are necessary to keep top-level talent and secure its leadership’s future. The firm’s board revealed that exec pay is performance-tied, with big chunks in bonuses tied to hitting targets.
Bank of England Cracks Down on Pension Fund Risks
Next week, the Bank of England will unveil tougher rules for liability-driven investment (LDI) funds used by pension schemes. These funds, designed to match assets with future payouts, stumbled after UK government bond prices nosedived, leaving some smaller pension schemes scrambling to meet collateral demands.
The Bank had to step in to steady bond prices and prevent further chaos. New regulations will tighten cash buffer requirements, ramp up data reporting, and boost governance standards. UK ministers are keen to balance strengthening fund resilience with keeping LDI funds viable.
Debate Rages Over Pension Fund Strategies
Some MPs have questioned whether pension schemes should rely on risky LDI funds at all. Pensions Minister Laura Trott, however, defended their role, insisting they remain a valuable part of the investment mix for securing retiree futures.
