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.