City hits back at Osborne bonus proposals
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Senior city figures have branded Conservative Shadow Chancellor George Osborne’s proposals to limit bank bonuses as purely political and simplistic.
Osborne yesterday urged the Government to ban retail banks from paying cash bonuses of more than about £2,000 per employee and said they should be paid in shares instead, in order to free up cash for lending.
But critics have questioned the logic of these plans in The Financial Times today, saying he is seeking to win over voters by echoing public anger over bank bonuses.
Institute of Directors director-general Miles Templeman said: “It would be much better for [Mr Osborne] to be wiser in terms of finding the right approach, rather than adapting a more headline-grabbing one.”
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