Government may dilute bank pay plan

The Treasury appears to be watering down proposals outlined by the last government for banks to publish more detail on their remuneration to staff,

Citing city sources, the Guardian says the coalition is backing away from plans for banks to reveal the amount of people earning amounts in bands of £500,000 to £1m and then at £1m intervals.

The report says the city now believes the government will fall back to a European Union (EU) scheme dictated by global banking supervisors in Basel that would instead have banks publish the size of the total bonus pool.

It comes after Robert Peston, BBC business editor, reported banks were discussing, under the umbrella body of the British Bankers’ Association (BBA), how they could reduce the total amount of bonuses they would pay.

He quoted a senior banking official as saying: “We are talking to each other about making some kind of joint statement about bonuses, that would demonstrate that we are reducing the amount we are allocating to remuneration this year.” (article continues below)

The BBA said it was not aware of any such talks, branding the reports speculation.

A BBA spokeswoman said: “Right now, speculation about the size and the issue of bonuses is just that – speculation.”

She added: “Outside the UK, the concern on bonuses is either much more limited or hardly exists at all.”