Banks may have to reveal top pay packets under new proposals

11 March 2010

New government proposals in the UK could lead to the numbers of bankers on the highest pay packets being revealed.

Lord Myners, City minister, made the comments as part of a speech at the British Private Equity and Venture Capital Association.

The minister called for banks to reveal how many staff members receive £500,000 per year and then further disclosures at rising £500,000 brackets.

Under the proposals, names of employees would not be disclosed, just the number receiving a certain amount as a salary.

Lord Myners’ proposals demand greater disclosure than measures previously outlined by Sir David Walker, who required that the minimum threshold be set at £1 million.

“From the outset of the crisis, the government has been focused on eliminating rewards for failure and ensuring that remuneration does not incentivise excessive risk taking,” the politician explained.

“We will continue to lead on this issue. David Walker's proposals will be implemented to give shareholders much more power and information to shape remuneration policies at banks. And in some cases we may go further.”

Angela Knight, the chief executive officer of the British Bankers’ Association, told Reuters that the announcement was an attempt to seduce voters ahead of the forthcoming general election.

By Jim Ottewill

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