A set of tough pay regulations are to be introduced which will see UK banks forced to publish the number of employees earning more than £1 million per year.
The Walker Review, published by Sir David Walker, is also proposing to provide the Financial Services Authority (FSA) the authority to curb any pay deals in the banking sector that it deems to be excessive.
The Government said it will now move to implement Sir David Walker’s proposals.
In a statement, Chancellor Alistair Darling, said: “Sir David’s proposals are the blueprint for how banks must be run in the future… The Government strongly supports his recommendations and will take steps to implement them as soon as possible.”
In addition, banks will have to limit the minimum bonus deals of senior staff to just one year, under new FSA rules coming into force at the start of next year.
In his report, Sir David said: “The fundamental change needed is to make the boardroom a more challenging environment than it has often been in the past.
“This requires non-executives able to devote sufficient time to the role in order to assess risk and ask tough questions about strategy,” added Sir David.
However, the new rules will no doubt be met with criticism from the UK’s banks since Sir David’s original proposals on remuneration met with a deluge of complaints from the City.
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