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5,000 bankers to earn more than £1m in 2009

At least 5000 UK bankers will earn more than £1m this year, according to City Minister Lord Myners.

Speaking to the House of Lords yesterday, Myners agreed that more had to be done in forcing banks to stop the excess remuneration of its top bankers.

He said: “There is precious little evidence that those at the top of our banks do really appreciate the concerns about the extraordinary levels of income they receive.

“At least 5,000 people working in the banking sector in the UK will receive, if nothing is done, in excess of £1m in remuneration.”

Myners was speaking to the Lords to announce implementation of proposals set out by the Walker review that will allow the Government to force banks to cut bonuses. This comes as reports suggest that directors of RBS are preparing to quit if they are denied bonuses.

Myners argued that recipients of large remuneration should not be ‘named and shamed’, rather shareholders should be questioning the pay packets of its firm’s top earners.

He said: “I think the real responsibility here must lie with the shareholders. Accordingly I have written to the National Association of Pension Funds, the Confederation of British Industries and the TUC urging them to use their influence to persuade trustees to ask their fund mangers: ‘What are you doing to stop these quite unreasonable and unjustified levels of remuneration?”’

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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Maybe I’m being too simplistic here, but isn’t the top rate of tax 40%, at the moment?
    That means for someone earning £1m, then they keep 60% of that and the other 40% goes to the exchequer.
    So 5000 people earning at least £1m, is £2bn in tax revenue, isn’t it?
    And if this money isn’t paid to those who are contractually eligible to receive it, then who makes up the difference in lost revenue for the taxpayer?

    I obviously missing something incredibly important here, but I thought the idea of ploughing millions into RBS was that they would pay it back really quickly. Then along comes this Government and penalises them for trying to do just that!

  2. OK Dermot – so let’s all campaign for these bankers to receive £2million in remuneration – then we’ll get the taxpayer’s support repaid even quicker !
    While we’re at it, lets put the bank’s cashiers on a minimum of £100k pa – well into the 40% tax band – that should help some more. I’m sorry to report – although I don’t believe in Father Xmas, any more than I believe that these bankers are interested in anything, other than devising ever more duplicitous and wily means to fill their pockets with our money. Surely, it was ever thus ?

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