Hoban tells bankers to self-regulate pay
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The Government has called on banks to show restraint with their bonus payments and self-regulate remuneration policies.
Speaking last night at the British Bankers’ Association annual Mansion House dinner, Treasury financial secretary Mark Hoban said he wanted the banks to lead pay reforms of the sector.
He said: “We have the opportunity to send a clear message to the public that the banking system now operates in a way that is fair and stable and no longer rewards employees based on short-term performance whilst leaving investors and taxpayers exposed to the long-term risks. It is better for the industry to lead these changes.”
Hoban said the Government was investigating plans for a tax on financial activities and has asked the FSA to examine other options in its upcoming review of its remuneration code.
However, the Government has indicated a financial activities tax on profits and remuneration would only be introduced as part of an international consensus, a move that is considered unlikely.
Hoban added: “The public sector and the private sector have been showing significant pay restraint since the recession. I don’t need to tell you that the next bonus round will be conducted against a background of continued pressure in the private sector. And by visibly reforming the way they operate, banks can show that they exist to serve the whole economy, not just their own interests.”
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Readers' comments (5)
Andrew Harwood | 13 Jul 2010 9:23 am
Here we go again. Will Governments never learn that banks will not curtail bonuses because they are asked to do so voluntarily. The naivity of politicians never ceases to amaze me
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Anonymous | 13 Jul 2010 9:24 am
Yes, calling for restraint will do it! come on people, if these bankers knew the meaning of restraint we wouldnt be in this mess in the first place! And as for showing significant restraint so far, wasn't it only last week we had an article about one of the NEST/PADA employees receiving £85k for one day a week! yeah that will give the public confidence.
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PD OFF | 13 Jul 2010 9:26 am
You can always rely on the banks to show restraint on their pay & bonuses.
Just like they all show restraint when they are
ripping off their customers.
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Anonymous | 13 Jul 2010 9:29 am
Hoban tells bankers to self-regulate pay !!!
When is he going to tell IFAs to self -regulate pay and tell the FSA to but out !!
The FSA should be there to regulate NOT manipulate the marketplace - IFAs remuneration is their business and any interference should be reported to the OFT
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Julian Stevens | 13 Jul 2010 11:42 am
Bankers self regulating their pay and bonuses? What a joke ~ Hoban must be living in La-La Land. Next thing we know, he'll be asking the FSA ever so nicely to self regulate their pay and bonus levels.
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