The Basel Committee of the world’s financial regulators has called for banks to disclose their bonuses in a new consultation paper.
The paper calls for banks to publish details on how pay is linked to performance, as well as total figures for different types of remuneration.
The new calls would cover the likes of top managers, risk management staff and “other material risk takers”. A consultation process is expected to conclude on February 25, 2011.
The paper says that the proposed requirements “will support an effective market discipline and will allow market participants to assess the quality of the compensation practices and the quality of support for the firm’s strategy and risk posture”.
The Committee said that previous, less detailed guidelines had been applied inconsistently by different countries, making pay comparisons difficult.
The Committee says that details on how pay is decided and linked to performance would be assessed in the new structure, however it says it would have to rely on market and peer pressure for implementation of moderate pay levels.
Earlier this month, the Committee of European Banking Supervisors introduced new rules that will see only 20 to 30 per cent of bonuses paid in upfront cash.