Business Maverick, Politics

British Chancellor in a race to cut bank bonuses

By Branko Brkic 28 September 2009

In a post-G20 world, many a finance minister will have to deliver very, very bad news to the local bankers

After last week’s G-20 statement on curbing excessive pay in banking sector, Alistair Darling has summoned the remuneration chiefs of the biggest banks in his country to tell them that executive pay needs to start showing at least a passing association with reality. Depending on your point of view that could be seen as political (British general elections are due before mid next year), unreasonable (how would banks keep their best and brightest talent out of the clutches of Goldman Sachs?), or plain justified – if slightly late.

Last week the G-20 laid out clear guidelines on what it would like to see in bankers’ bonuses:

  • negotiated every year;
  • as much as possible in stock, allowing it to be deferred subject to clawback
  • performance and risk as the main measurements;
  • tougher disclosure requirements;
  • a link between the total bonus pool and the income of the institution;
  • completely independent compensation committees.

Chancellor Darling is obviously eager to put his own (read: Labour Party) stamp on the coming reforms. Considering that the Labour Party will need the luck of the devil to stay in power after those elections, it sure can’t hurt.

Gallery

In other news...

The South African economy is choking harder than the Proteas. Although to be choking you have to actually be eating and the Proteas seem to be on some sort of juice cleanse-like fast…*

Back to the economy: In the first quarter the GDP dive-bombed by a whopping 3.2%. The sense of futility can paralyse us into inaction and moaning. But it’s times like these that call for effort and action, no matter how small. Yes, South Africa is hurting. Yes the ravaged economy is evident everywhere you look. But you can make a difference, in your own personal way and by supporting independent media like Daily Maverick. We’ve pledged to continue the fight through producing incisive and impactful investigations and analysis, the same way we have done every day for the last decade.

By becoming a Maverick Insider you can help us keep doing what we do, so that you and others who can’t afford it, can keep reading the truth. For whatever amount you choose, you can support DM and it only takes a minute.

Support Daily Maverick→Payment options

*Proteas, you know we love you. We’d just love you more if you won occasionally...


Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or if you are already an Insider.

Business Maverick

Big tech is under fire. Could that mean it’s time to buy?

By Ruan Jooste

"Man is by nature a political animal" ~ Aristotle