Lord Myners calls on fund groups to get tough on bank bonuses
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City Minister Lord Myners has written to fund managers calling on them to re-examine bonus arrangements that banks have with staff.
In a letter to fund managers at groups such as Fidelity and Schroders, Lord Myners reportedly called for greater scrutiny of bonus agreements by institutional investors.
According to the Financial Times, the letter said: “Public attention will focus on the decisions that boards make about bonuses.
“Many banks have earned large profits this year from remarkably benign conditions, created through the interventions by governments across the world.”
He said these profits should be retained by shareholders in the business as capital rather than being paid out in large bonuses.
He asked the fund groups to specify what interaction they had had with banks over bonus agreements.
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Readers' comments (1)
Andrew Weston | 3 Feb 2010 11:48 am
What about investors getting tough on fund managers salaries & bonuses. What percentage of them outperform trackers ? Yet they still get 6 figure bonuses.....Lord Myners obviously doesn't have his finger on the pulse......no surprise there then.
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