Government opens consultation on bank bonuses

The government has introduced a consultation aimed at tackling unacceptable bank bonuses by improving pay transparency within large banks.

The proposals would extend transparency arrangements at the largest UK banks and the UK banking operations of large foreign banks by requiring the eight highest-paid non-board executives to disclose their remuneration arrangements.

Mark Hoban, financial secretary to the Treasury, said: “The banking system cannot reward employees for short-term performance while leaving investors exposed to long-term risk.

“We want shareholders to hold banks to account for their bonus structure, which is why we are taking action to make top-level pay more transparent.

“We want the most transparency for those with the greatest responsibility.”

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