Banks fight Chancellor’s plans for bonus disclosure

British banks are fighting Chancellor George Osborne’s plans to force them to disclose the details of their top traders’ bonuses.

George Osborne
George Osborne

Osborne has been trying to devise ways to make City pay more transparent than in other financial centres.

According to a report in the Financial Times, Royal Bank of Scotland and Barclays believe pay disclosure would lead to a “witch-hunt” and could drive some bankers out of Britain.

It says Osborne is working on a compromise deal which would go further than the transparency regimes in New York and Hong Kong. (article continues below)

It is thought Britain’s rules on disclosure would take elements of the regimes in Hong Kong, where banks are forced to reveal, anonymously, the salaries and bonus of their highest paid staff, and New York, where banks are forced to publish the remuneration of their five highest paid executive officers.

The report says negotiations are nearing completion and an agreement is expected next week.