This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8204530.stm
The article has changed 6 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Call for commission to curb pay | Call for commission to curb pay |
| (20 minutes later) | |
| One hundred public figures have joined a pressure group's campaign for a High Pay Commission to curb "excessive" pay, amid concern over high City salaries. | One hundred public figures have joined a pressure group's campaign for a High Pay Commission to curb "excessive" pay, amid concern over high City salaries. |
| Politicians, as well as unions and academics, are backing the centre-left Compass group's campaign for steps such as maximum wage ratios and bonus taxes. | Politicians, as well as unions and academics, are backing the centre-left Compass group's campaign for steps such as maximum wage ratios and bonus taxes. |
| Chancellor Alistair Darling said he was ready to curb bonuses if necessary. | Chancellor Alistair Darling said he was ready to curb bonuses if necessary. |
| Media reports suggested Barclays was seeking to hire five JP Morgan bankers with bonus deals totalling £30m. | Media reports suggested Barclays was seeking to hire five JP Morgan bankers with bonus deals totalling £30m. |
| Seperately, the Times on Monday said Barclays paid million of pounds to its head of Barclaycard, Anthony Jenkins, for a role that never came to fruition. | Seperately, the Times on Monday said Barclays paid million of pounds to its head of Barclaycard, Anthony Jenkins, for a role that never came to fruition. |
| Barclays declined to comment on both reports. | Barclays declined to comment on both reports. |
| Minimum wage | Minimum wage |
| The group urging for control over pay issued a joint statement, which said the "unjust rewards" of a few hundred "masters of the universe" exacerbated the risks to which the British economy was exposed. | The group urging for control over pay issued a joint statement, which said the "unjust rewards" of a few hundred "masters of the universe" exacerbated the risks to which the British economy was exposed. |
| The campaign's backers include Liberal Democrat Treasury spokesman Vince Cable and Labour MP Jon Cruddas, who argue that high levels of pay and bonuses led to the financial crisis. | The campaign's backers include Liberal Democrat Treasury spokesman Vince Cable and Labour MP Jon Cruddas, who argue that high levels of pay and bonuses led to the financial crisis. |
| The campaign compared the wage levels of the highly-remunerated to those of employees who worked a 40-hour week earning the minimum wage. | The campaign compared the wage levels of the highly-remunerated to those of employees who worked a 40-hour week earning the minimum wage. |
| It argued someone earning the minimum wage would have to work for about 226 years to receive the same annual pay as a FTSE 100 boss. | It argued someone earning the minimum wage would have to work for about 226 years to receive the same annual pay as a FTSE 100 boss. |
| There is no justification for massive pay and bonus awards in financial institutions, the most important of which are guaranteed or owned or have been rescued by the taxpayer Vince CableLib Dem Treasury spokesman | There is no justification for massive pay and bonus awards in financial institutions, the most important of which are guaranteed or owned or have been rescued by the taxpayer Vince CableLib Dem Treasury spokesman |
| The statement continued: "Remuneration and performance pay cycles are too short; rewards for failure are too great, to the detriment of the long-term future of these companies and the wider economy. | The statement continued: "Remuneration and performance pay cycles are too short; rewards for failure are too great, to the detriment of the long-term future of these companies and the wider economy. |
| "The government must now take decisive action on excessive pay at the top, when it has had such a damaging and corrosive effect on the real economy and wider society." | "The government must now take decisive action on excessive pay at the top, when it has had such a damaging and corrosive effect on the real economy and wider society." |
| In the same way that the Low Pay Commission was set up in 1997 to advise on the minimum wage, a High Pay Commission was needed to introduce "a wide-ranging review" of pay at the top and bring in new measures to curb excessive remuneration, it said. | In the same way that the Low Pay Commission was set up in 1997 to advise on the minimum wage, a High Pay Commission was needed to introduce "a wide-ranging review" of pay at the top and bring in new measures to curb excessive remuneration, it said. |
| 'New class' | 'New class' |
| Concern over high bonuses is not new, but it has prompted anger in recent months, at a time when the global economy has been in recession. | Concern over high bonuses is not new, but it has prompted anger in recent months, at a time when the global economy has been in recession. |
| Many of those banks seen to have played a crucial role in the financial crisis, through irresponsible lending, were also the recipients of state aid. | Many of those banks seen to have played a crucial role in the financial crisis, through irresponsible lending, were also the recipients of state aid. |
| There is public anger over the prospect that the same banks will, in time, return to handing out large bonuses while workers in the general economy still suffer. | There is public anger over the prospect that the same banks will, in time, return to handing out large bonuses while workers in the general economy still suffer. |
| There is also concern that without new rules, the actions that caused the financial crisis could be triggered again. | There is also concern that without new rules, the actions that caused the financial crisis could be triggered again. |
| Brendan Barber, general secretary of the TUC, argued that the growing gap between executive and employee pay had created "a new class of super-rich that float free from society". | Brendan Barber, general secretary of the TUC, argued that the growing gap between executive and employee pay had created "a new class of super-rich that float free from society". |
| 'Rat race' | 'Rat race' |
| G20 leaders addressed the topic of bonuses and high pay at their meeting in London in April. One member nation, France, has been particularly vociferous on the topic. | G20 leaders addressed the topic of bonuses and high pay at their meeting in London in April. One member nation, France, has been particularly vociferous on the topic. |
| Christine Lagarde, France's finance minister, told French radio on Monday: "What we need to collectively eradicate is this rat race - the race for bonuses." | Christine Lagarde, France's finance minister, told French radio on Monday: "What we need to collectively eradicate is this rat race - the race for bonuses." |
| The US House of Representatives has voted in favour of laws to prevent banks paying bonuses that encourage excessive risk-taking. | The US House of Representatives has voted in favour of laws to prevent banks paying bonuses that encourage excessive risk-taking. |
| However, the British Bankers Association (BBA) has said pay rules are already "more stringent" in the UK than in any other country. | However, the British Bankers Association (BBA) has said pay rules are already "more stringent" in the UK than in any other country. |