Bonuses Are Targeted in U.K. Crackdown on Audit Scandals

  • Government proposes creation of more powerful regulator
  • Regulator should be able to investigate directors: government
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Top executives at companies hit by accounting scandals could lose their bonuses under U.K. proposals for beefed-up regulation after a wave of corporate collapses including Carillion Plc and travel firm Thomas Cook Group Plc.

The government proposed creating a new regulator with the power to wield a range of sanctions, including reprimands, fines and even temporary bans from directorships, signaling it’s serious about cracking down on questionable accounting practices.