Brown Backs Holding Back Bank Bonuses for Five Years

Discussion in 'Professional Trading' started by ASusilovic, Jul 16, 2009.

  1. July 16 (Bloomberg) -- Prime Minister Gordon Brown said the U.K. government will adopt plans forcing banks to hold back half of all bonuses of senior traders for up to five years to discourage excessive risk taking.

    Brown today told lawmakers that he is supporting proposals by David Walker, ex-chairman of Morgan Stanley International, calling on limits for traders earning more than members of bank boards. Walker also called for banks to disclose in annual reports how much they pay their top traders.

    “Remuneration has got to be long term,” Brown told a committee in Parliament in London. “In other words, it is only on the basis of long term performance that we can guarantee the bonus system in the future. He is recommending bonuses should be over a five year period.”

    The government is looking at ways to overhaul bank rules after the worst financial crisis since the Great Depression led authorities to commit 1.4 trillion pounds ($2.3 trillion) to bailing out the financial system and institutions including Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.

    Opposition parties welcomed the plan and said the measures should be mandatory instead of voluntary as Walker suggests. They also have said it’s taking Brown too long to act.

    Any hedgefunds looking for top tier UK bank traders ? Here is your "opportunity"...
  2. AK100


    Well, they're going to have to look long and hard because most of the big earners are nothing but bid-offer monkeys.

    Give them a blank screen every morning (ie, not at their bank) and I doubt they'll be able to recreate the past 'profits'.
  3. sjfan


    Is there some sort of a point here? If you take a doctor and make him a burger flipper, he can't make the same amount of money he did last year; what's your point exactly? Bank traders != retail trader. It's not even remotely the same profession.