Lib Dems call for ‘Big Bang’ on banker bonuses
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The Liberal Democrats have called for a ban on banker cash bonuses of more than £2,500 as part of their plans to shake-up City pay.
Liberal Democrat leader Nick Clegg says that the five point plan would sweep away “obscene” banker bonuses and introduce strict regulation on banking remuneration.
As part of a move the party claims would be as “fundamental as the Big Bang on the 1980’s”, the Liberal Democrats would restrict cash bonuses to £2,500, with any higher bonuses paid in shares that would not be redeemable for at least five years.
The party has also called for the scrapping of all bonuses for boards of banks, banning loss-making banks from paying bonuses at all, publishing the names of all bank staff who earn more than the prime minister and punishing bank directors with fines if their institutions break the pay code of practice.
Clegg says: “Only by transforming the banking industry from top to toe can we start to build a new economy. I make no apologies for the fact this will mean big changes in the City of London.”
The Liberal Democrats are set to launch their manifesto tomorrow. The party has said they would not wait for international clearance on the rules.
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Readers' comments (4)
PensionMan | 14 Apr 2010 9:59 am
Although this may not work in practice I really do like what I am hearing from the Lib Dems nowadays!
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Jill Terr | 14 Apr 2010 1:03 pm
I think lib dems policy of locking the drawers after the audit has bolted is misguided but good luck to them finally sounding credible
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Sean | 14 Apr 2010 4:53 pm
And how would this work in practice - staff earning £15,000 a year who are rewarded by a cash bonuses of £5,000 for hitting agreed targets. Seems a bit unfair from my viewpoint.
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Anonymous | 15 Apr 2010 4:29 pm
I will vote for them if they include a cap on the obscene bonus culture at canary wharf at the same time.
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