Speaking to BBC radio, the UK's chancellor noted that the subject must be addressed on an international basis in order to solve the issue of financial institutions issuing big bonuses in an effort to stop employees from moving to jobs abroad.
He said that banks should be "responsible" for the financial rewards offered to their staff, but added that he is concerned that "when you tackle banks about this, they say that if you do something here, the Americans, the Swiss, or the French ... will poach our people".
The chancellor explained that using the Financial Services Authority (FSA) would be the "obvious" way to ensure pay and bonuses are regulated, but added that it could be possible to use legislation to address the issue.
Earlier this month, the FSA introduced new rules banning the payment of guaranteed bonuses for a period longer than a year.
Written by Gary Cooper