Finance ministers from the Group of 20 have agreed to deliver a plan to control bankers’ bonuses. The plan would permit the clawback of bonuses, would link bonuses to base compensation and require banks to disclose the pay of their top earners. It wouldn’t include a cap on bonus payments, an official said in a Bloomberg report. At the G-20 London meeting, it was agreed that a final package will be unveiled at a summit in Pittsburgh this month. The Financial Stability Board, a Basel-based of panel international regulators, will report back in time for the summit on way of implementing the measures. However, the U.K. Chancellor of the Exchequer Alistair Darling clashed with French and German counterparts on whether to cap compensation for bankers, saying such proposals would be unworkable. French Finance Minister Christine Lagarde and Germany’s Peer Steinbrueck, are trying to steer the G-20 toward reining in pay at banks after taxpayer-funded bailouts of the industry. The G-20 plan would be adopted by Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the U.S., the U.K. and the European Union.
G-20 to Curb Bankers’ Bonuses
At the G-20 London meeting, it was agreed that a final package will be unveiled at a summit in Pittsburgh this month.
September 7, 2009