IAP.L Share News (IAP)

LONDON, June 10 (Reuters) - British interdealer broker ICAP halved bonus payments for top executives in its lastfinancial year, partly to reflect the impact of an $87 millionfine it paid in 2013 for benchmark interest rate fixing, thecompany said on Tuesday.

In its annual report ICAP said its remuneration committeehad "considered at length" the impact of the settlements withBritain's Financial Conduct Authority and the U.S. CommoditiesFutures Trading Committee over allegations that some employeesattempted to manipulate Libor (the London interbank offeredrate) - a key interest rate - should have on compensation.

In April, three of its former employees were charged inBritain with running a four-year scheme to rig yen Libor.

It said the fine, coupled with its failure to meet itstarget for full-year profit before tax, triggered its decisionto cut the bonus pool for executive directors by 50 percent.

ICAP last month reported that full year profit before taxfell 4 percent to 272 million pounds ($457 million) for the yearto March 31.

Chief Executive Michael Spencer's pay, including salary andbonus award, fell almost 49 percent to 2.2 million pounds,versus 4.3 million pounds in 2013, according to the report.

ICAP, which like rival Tullett Prebon matchesbuyers and sellers of bonds, was told earlier on Tuesday by theEuropean Commission that it might have broken antitrust rules bytaking part in cartels that helped rig rates.

The warning gives ICAP a last chance to mount its legaldefence in what could be one of the final chapters of the widerLibor investigation.

In response, the broker denied that it had violated Europeancompetition law and vowed to defend itself.

ICAP, which refused to settle the European case in December,could face penalties of up to 10 percent of its global turnoverif found guilty.($1 = 0.5956 British Pounds) (Reporting by Clare Hutchison, editing by David Evans)