G20 leaders to call for banker pay curbs

[Joanne98]

Source: Reuters

PITTSBURGH (Reuters) - World leaders at the G20 meeting here on Thursday were closing in on a statement calling for new restraints on banker pay, but would not endorse specific monetary caps, a deal-breaker for the United States.

High levels of compensation, which in some cases resulted in top executives of money-losing financial companies reaping tens of millions of dollars in bonuses, have outraged political leaders and are a top target of regulatory reform efforts.

Officials were focused on finding ways to link a bank's bonus pool and executive compensation more closely to the health of its balance sheet and overall profitability.

"Europeans are horrified by banks, some reliant on taxpayers' money, once again paying exorbitant bonuses," said European Commission President Jose Manuel Durao Barroso in a statement preceding the official opening of the summit of the Group of 20 nations.

"In Pittsburgh, the EU will call for coordinated action to stop this, building on measures already taken in Europe and elsewhere," he said.


Read more: http://www.reuters.com/article/newsOne/idUSTRE58N5KV20090924

[anigbrowl]

1. percentage figures would work better

linked to the bank's profitability and if I had my way, also to the pay of bottom-tier employees and bank fees. Eg, a bank which deals fairly with its customers by not hitting them with exorbitant fees is one where you can earn a bigger bonus because you're creating value instead of just soaking people. Probably won't happen though, legislators and math don't mix.

[Mudoria]

2. The strangest thing about the compensation is this..

a financial institution loses million (or billions) and then pays their top executives outlandish bonuses. If the government or another agency calls them out on it the institution cries we have to pay it or lose these talented people. Hello!?! If they were that talented you wouldn't have lost millions or billions of dollars, you can't find someone more talented than these clowns??

[FarCenter]

3. I think the British Navy rule was that if a Captain lost a ship, he didn't get another ship

Regardless of whether the Captain's actions were responsible for the loss

It was assumed that there were enough junior officers that they could alway promote someone to captain a new ship.