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| Banks 'must reveal £1m earners' | Banks 'must reveal £1m earners' |
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| The UK's banks should be forced to publicly disclose the number of their employees who earn more than £1m a year, a report has concluded. | The UK's banks should be forced to publicly disclose the number of their employees who earn more than £1m a year, a report has concluded. |
| That is one of the main findings of the government-commissioned Walker Review into the corporate governance of banks. | That is one of the main findings of the government-commissioned Walker Review into the corporate governance of banks. |
| Sir David Walker, who led the report, also said non-executive directors needed more power to monitor banks' risk taking and pay deals. | Sir David Walker, who led the report, also said non-executive directors needed more power to monitor banks' risk taking and pay deals. |
| The government said it would now move to implement Sir David's proposals. | The government said it would now move to implement Sir David's proposals. |
| Specifically, it is to include his call for banks to have to disclose how many staff earn more than £1m in its Financial Services Bill which has just started going through Parliament. | Specifically, it is to include his call for banks to have to disclose how many staff earn more than £1m in its Financial Services Bill which has just started going through Parliament. |
| We're going to have to fund the problems generated by the banks not only this year but it's our children and grandchildren who are going to have to pay these costs so the basis for the anger and frustration is profound Sir David Walker | We're going to have to fund the problems generated by the banks not only this year but it's our children and grandchildren who are going to have to pay these costs so the basis for the anger and frustration is profound Sir David Walker |
| Sir David told the BBC that calls to name individuals who were earning that sum were not supported "by a shred of evidence", and that there were well over a thousand on that salary level in the City. | Sir David told the BBC that calls to name individuals who were earning that sum were not supported "by a shred of evidence", and that there were well over a thousand on that salary level in the City. |
| Earlier this year, City minister Lord Myners had suggested that banks should have to reveal the identities of their 20 best-paid staff outside the boardroom - where earnings are already fully disclosed. | Earlier this year, City minister Lord Myners had suggested that banks should have to reveal the identities of their 20 best-paid staff outside the boardroom - where earnings are already fully disclosed. |
| 'Anger and frustration' | 'Anger and frustration' |
| Mr Walker also acknowledged that the fall-out from the banking crisis would be felt by the British people for many years to come. | Mr Walker also acknowledged that the fall-out from the banking crisis would be felt by the British people for many years to come. |
| "We're going to have to fund the problems generated by the banks not only this year but it's our children and grandchildren who are going to have to pay these costs so the basis for the anger and frustration is profound," he said. | "We're going to have to fund the problems generated by the banks not only this year but it's our children and grandchildren who are going to have to pay these costs so the basis for the anger and frustration is profound," he said. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| The review recommends that FTSE 100-listed banks and the largest building societies should disclose in bands the number of "high end" employees, including executive board members. | The review recommends that FTSE 100-listed banks and the largest building societies should disclose in bands the number of "high end" employees, including executive board members. |
| The bands would show the number of people taking home £1m to £2.5m, £2.5m to £5m, and £5m and above. | The bands would show the number of people taking home £1m to £2.5m, £2.5m to £5m, and £5m and above. |
| Within each band, the main elements of salary, cash bonus, deferred shares, performance-related long-term awards and pension contribution should be disclosed, the report suggests. | Within each band, the main elements of salary, cash bonus, deferred shares, performance-related long-term awards and pension contribution should be disclosed, the report suggests. |
| The changes are expected to come into force from spring 2010 with the first yearly earnings disclosures not available until 2011. | The changes are expected to come into force from spring 2010 with the first yearly earnings disclosures not available until 2011. |
| 'Falls short' | 'Falls short' |
| Responding to the report, the union Unite said that the review hadn't gone far enough. | Responding to the report, the union Unite said that the review hadn't gone far enough. |
| "There is still a long way to go before we see the changes in culture and behaviour required in the boardroom of the banks. Simply tinkering on the edges of this industry is totally futile," said Rob MacGregor of Unite's national office. | "There is still a long way to go before we see the changes in culture and behaviour required in the boardroom of the banks. Simply tinkering on the edges of this industry is totally futile," said Rob MacGregor of Unite's national office. |
| The Chartered Institute of Personnel and Development (CIPD) said that too much emphasis had been placed on pay and bonuses. | The Chartered Institute of Personnel and Development (CIPD) said that too much emphasis had been placed on pay and bonuses. |
| "Risk committees need to review whether company culture, talent management, leadership and organisational development are also sources of potential organisational hazard," said Charles Cotton, policy adviser at the CIPD. | "Risk committees need to review whether company culture, talent management, leadership and organisational development are also sources of potential organisational hazard," said Charles Cotton, policy adviser at the CIPD. |
| 'Blocking powers' | 'Blocking powers' |
| The Walker Review was commissioned by the government in February following the crisis in the UK and global banking sector, much of which was blamed on excessive risk taking and bonus payments. | The Walker Review was commissioned by the government in February following the crisis in the UK and global banking sector, much of which was blamed on excessive risk taking and bonus payments. |
| A number of his proposals are already included in FSA rules on pay and company governance due to come into force in January. | A number of his proposals are already included in FSA rules on pay and company governance due to come into force in January. |
| The fundamental change needed is to make the boardroom a more challenging environment than it has often been in the past Sir David Walker | The fundamental change needed is to make the boardroom a more challenging environment than it has often been in the past Sir David Walker |
| The review also recommends that: | The review also recommends that: |
| • A bank's remuneration committee should have direct responsibility for the pay of all high-paid employees | • A bank's remuneration committee should have direct responsibility for the pay of all high-paid employees |
| • Board-level risk committees should be chaired by a non-executive. (Non-executive directors are appointed from outside a company to sit on its board and scrutinise its performance) | • Board-level risk committees should be chaired by a non-executive. (Non-executive directors are appointed from outside a company to sit on its board and scrutinise its performance) |
| • Risk committees have power to scrutinise and if necessary block big transactions | • Risk committees have power to scrutinise and if necessary block big transactions |
| • Non-executive directors spend up to 50% more time on the job | • Non-executive directors spend up to 50% more time on the job |
| • Institutional investors be more active in monitoring the banks. | • Institutional investors be more active in monitoring the banks. |
| David Cumming, head of UK equities at Standard Life Investments - which controls £150bn of investments - said he accepted the criticism that shareholders might not have exerted enough control in corporate governance. | David Cumming, head of UK equities at Standard Life Investments - which controls £150bn of investments - said he accepted the criticism that shareholders might not have exerted enough control in corporate governance. |
| "Most institutions didn't do enough to intervene, particularly in terms of the banks, but I think one of the assumptions here is that we're going to get it right as well," he said. | "Most institutions didn't do enough to intervene, particularly in terms of the banks, but I think one of the assumptions here is that we're going to get it right as well," he said. |
| "If you go back to 2006-2007, a lot of shareholders were pushing financial institutions and other companies to take on a lot of debt and go for it, so I think engagement is a good thing but we can't assume that it will solve everything." | "If you go back to 2006-2007, a lot of shareholders were pushing financial institutions and other companies to take on a lot of debt and go for it, so I think engagement is a good thing but we can't assume that it will solve everything." |
| 'Tough questions' | 'Tough questions' |
| 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. | 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. |
| HAVE YOUR SAYNobody, absolutely nobody this side of the universe no matter how brilliant they are is worth more than £100,000L J Stewart, Edinburgh Send us your comments | |
| "This requires non-executives able to devote sufficient time to the role in order to assess risk and ask tough questions about strategy." | "This requires non-executives able to devote sufficient time to the role in order to assess risk and ask tough questions about strategy." |
| Chancellor Alistair Darling said Sir David's proposals were "the blueprint for how banks must be run in the future". | Chancellor Alistair Darling said Sir David's proposals were "the blueprint for how banks must be run in the future". |
| CBI director general Richard Lambert said he welcomed the report's recommendations. | CBI director general Richard Lambert said he welcomed the report's recommendations. |
| "Sir David Walker has set out a sensible package of proposals that can strengthen the role of boards in identifying and managing risk," he said. | "Sir David Walker has set out a sensible package of proposals that can strengthen the role of boards in identifying and managing risk," he said. |
| "In particular, we welcome the emphasis on ensuring balanced boards which are also equipped with the right skills, and on ensuring investors are active and engaged in scrutinising business strategy." | "In particular, we welcome the emphasis on ensuring balanced boards which are also equipped with the right skills, and on ensuring investors are active and engaged in scrutinising business strategy." |