UK banker bonus proposals to be changed by chancellor, news report claims

23 November 2010

George Osborne, chancellor of the exchequer, is to water down new rules on banker bonuses which would have seen the names of those who received more than £1 million revealed.

According to the Financial Times, the chancellor of the coalition government wants any legislation the UK adopts surrounding the disclosure of banker pay to be aligned with regulatory approaches from other states.

Mr Osborne is thought to be worried that certain institutions will look to relocate their main offices outside of the UK and London if the legislation was to be introduced by the UK on its own.

In a subsequent interview with the BBC, the chancellor said: “There are European rules being developed in this area.

“It might be better for Britain to promote this internationally rather than just unilaterally.”

Proposals to disclose the details of the executives who earned more than £1 million were originally drawn up by Sir David Walker as part of a report on pay within the financial services.

He recently wrote an article for the FT claiming how disappointed he was that other countries had not chosen to follow the UK’s example and call for the details of bankers earning £1 million to be disclosed.

The former chairman of Morgan Stanley stated that it would be a mistake for the UK’s coalition government to implement the proposals without international consensus.

By Jim Ottewill

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