Labour to introduce new legislation to curb bonuses for bankers

BONUSES

Labour to introduce new legislation to curb bonuses for bankers

Prime minister Gordon Brown has warned that he will use new laws to rein in bankers' bonuses, The Guardian newspaper reports.

"Regulators will have the power to force individual banks to build their capital base if they continue to pay excessive bonuses," The Guardian says.

Meanwhile, in a speech to the Labour Party conference on Monday 27 October, chancellor Alistair Darling said new laws being brought in over coming months would "mean an end to automatic bank bonuses year after year". He said: "It will mean an end to immediate pay-outs for top management."

Any bonuses will have to be paid out over a number of years, so they can be clawed back if not warranted by long-term performance.

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Title: "Gordon Brown targets bankers in bid to revive poll chances", The Guardian, 27 September 2009.

Availability: To read the article online visit www.guardian.co.uk/politics/2009/sep/27/gordon-brown-labour-conference-bankers.

--> E-reward has published a detailed analysis of the regulatory developments for pay in financial services firms. For more details email paul@e-reward.co.uk. Or visit www.e-reward.co.uk/reports.asp?report=73.