UK govt announces bank bonus consultation

7 December 2011

Major banks in the UK are set to undergo a consultation with regard to their bonus schemes, it has emerged.

The government has announced it is to conduct analysis of the way in which financiers operate in terms of handing out additional financial rewards to their staff in order to enhance transparency in this area.

Under these new proposals, the eight highest-paid non-board executives at a lender will be required to disclose details of their remuneration packages, meaning shareholders will be in a better position to hold them to account.

The rules would be implemented on 15 large banks in total and Mark Hoban, financial secretary to the Treasury, observed: "The banking system cannot reward employees for short-term performance while leaving investors exposed to long-term risk. We want the most transparency for those with the greatest responsibility."

Recently, Otto Thoresen of the Association of British Insurers called on financers to be more responsible with their bonus payments.

By Asim Shah

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