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.