In an interview with the Financial Times, Brown outlined tough plans to curb the excessive remuneration that has become widespread in the banking sector. His plans are part of an international drive to rework the banking sector so as to try and avoid future ‘boom and bust’ cycles.
Brown told the FT that he wants banks to base remuneration on long-term achievements. He says financial institutions should also be able to clawback any bonuses if employee’s performance and results had suffered in subsequent years.
He also told the paper he agreed with the recent comments of FSA chairman Lord Turner that the City has become “bloated”, but says any cut backs will not affect London’s standing as a world centre of finance.
Brown also hit out at the Tories in the interview by criticising them for not supporting the “tough measures” that the Government was trying to implement on the banking industry.