George Osborne Is Defeated 26 to 1 on EU Bonus Caps
THE DAILY TELEGRAPH: Britain was today defeated after being outnumbered 26 to one over controversial European Union proposals to impose caps on bonuses paid to bankers.

EU finance ministers overruled British opposition to the banking remuneration caps and "technical negotiations" over the detail of regulations to begin next week ahead of a final decision next month.

Michel Barnier, the European Commissioner for financial services, hailed a "crystal clear" deal allowing the EU to impose a bonus limit of 100 pc of salary, or a maximum 200pc after agreement with shareholders, from January 2014.

"The caps are fixed," he said. "These caps will be the basis of our work from now on. All the main points have been approved and will not change."

The caps will also apply to all European bankers working in New York, Hong Kong, Singapore or other overseas branches, again overriding British concerns.

Mr Barnier insisted that the EU was confident that the caps would survive the threat of legal challenges by banks because the legislation specified bonus ratios to existing salaries rather than setting precise ceiling figures for payments. » | Bruno Waterfield, Brussels | Tuesday, March 05, 2013

THE GUARDIAN: George Osborne rebuffed by rest of EU on bank bonuses: Britain left isolated as 26 European finance ministers agree to a clampdown on executive pay targeted at the City » | Ian Traynor in Brussels | Tuesday, March 05, 2013

Inside Story: Curbing Europe's Bank Bonuses
European officials have struck a deal that could radically change the banking industry's bonus culture. Hazem Sika, discusses with guests: Alessio Rastani, a trader and founder of the leading trader dot com; Birgitte Andersen, director of the Big Innovation Centre. Birgitte is an economist specialising in innovation and EU policy; and Peter Schiff, CEO of Euro Pacific Capital, an American investment broker and author of several books on the financial crisis.

Swiss Vote 'To Crack Down On Excessive Pay'
THE DAILY TELEGRAPH: A plan to limit pay to executives based in Switzerland is expected to be passed on Sunday, as people vote on the referendum against “rip-offs” remuneration.

Under the proposal, shareholders will be given the right to hold a binding vote on executive remuneration. Companies would also no longer be able to pay so-called “golden hellos” and “golden parachutes”, whereby senior managers receive a one-time cash lump sum, often running into millions of pounds, when joining or leaving a company.

Polls show the majority of Swiss plan to vote “yes” in the referendum, despite businesses warning it will drive out companies from the country.

The move will also be a blow to the many foreign firms that have moved their headquarters to Switzerland in recent years to benefit from better tax deals, including from Britain.

The Swiss vote comes after Vince Cable, the UK business secretary, pushed through plans to give shareholders a greater say over executives’ pay, including a binding vote on remuneration, last year. The UK measures are due to take effect from October as part of an effort to boost transparency and curb compensation levels when the performance of the business does not warrant it.

Elsewhere in Europe, countries such as the Netherlands and Denmark already have similar legislation allowing shareholders at least a binding vote on executive compensation. » | Louisa Peacock | Saturday, March 02, 2013

My comment:

The plucky Swiss are doing it again. The Swiss are a courageous people. Hats off to the Swiss!

I have lived in Switzerland for over four years. It was the most wonderful experience of my life. Switzerland is a wonderful country to reside in; and the Swiss understand how to keep it that way. I have only respect for the Swiss.

That is exactly what I do not have fo this excuse of a government. When the EU proposed clipping the wings of the greedy bankers this week, all we got from Cameron was excuses and circumlocution. In short, he doesn't have the balls to call the bluff of the bankers. Let the bastards find somewhere else to fill their coffers. Running a country is not all about letting the greedy stuff their bank accounts full with ill-gotten gains; rather, it's about creating a fair society for all. And when there is a period of austerity, we really should all be in this together. Those shouldn't be just fine words uttered by a prime minister. They should have some resonance.

If Cameron has any hope of being re-elected––and it is looking pretty grim for him right now––he needs to understand that he, above all people, cannot afford to be viewed as a soft touch for the über-rich. In short, he needs to grow a pair.

Along with so many other people in this country, I am sick and tired of the greed of bankers and CEOs who have no understanding of humility and fairness. Nobody expects them to live in penury; but we do expect them to toe the line. Now back to the Swiss: Bravo! – © Mark

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One Year's Salary : Europe Caps Banker Bonuses
SPIEGEL ONLINE INTERNATIONAL: In a bid to address widespread public outrage over greed in the financial sector, European officials have agreed to legislation capping bankers' bonuses at a maximum of a year's salary. Great Britain fought to prevent the measure, but failed to rally enough support.

Starting in 2014, banks in the European Union must limit bonus payments for their employees. After some 10 months of tough negotiations, top European officials agreed late on Wednesday in Brussels to cap bonuses at a maximum of one year's base salary.

"For the first time in the history of EU financial market regulation, we will cap bankers' bonuses," said the European Parliament's head negotiator, Austria's Othmar Karas, in a statement. "The essence is that from 2014, European banks will have to set aside more money to be more stable and concentrate on their core business, namely financing the real economy, that of small and medium-sized enterprises and jobs."

The bonus cap was part of a package of financial laws hammered out between EU officials, the European Commission and representatives of the 27 member states in negotiations led by Ireland's Finance Minister Michael Noonan. The goal is to prevent bankers from taking excessive risks, which can shake the financial industry.

"This overhaul of EU banking rules will make sure that banks in the future have enough capital, both in terms of quality and quantity, to withstand shocks," Noonan said. "This will ensure that taxpayers across Europe are protected into the future." Fierce Resistance from London » | kla -- with wire reports | Thursday, February 28, 2013

Consultants Who Advise on Bankers' Pay Make Prostitutes Look Respectable Says Former Chancellor Lord Lawson

MAIL ONLINE: Lord Lawson made comment as MPs took evidence on standards in banking / He said pay consultants make prostitutes 'seem thoroughly respectable' / Former Chancellor said they feared missing out on future advisory fees if they suggested modest pay deals

Pay consultants who advise banks on their salary packages make prostitutes look ‘respectable’, a former Chancellor of the Exchequer said today.

Tory peer Lord Lawson gave his forthright opinion as MPs took evidence on standards in the banking industry.

He said: ‘In my experience, they [pay consultants] are a profession which makes prostitution seem thoroughly respectable.’

And Lord Lawson, who ran Britain’s finances under Margaret Thatcher, refused to back down even when a female witness giving evidence to him took exception to the characterisation.

Carol Arrowsmith, a senior pay consultant with accountancy firm Deloitte, said it was ‘difficult’ to accept the suggestion that her profession was worse than prostitution.

‘It may be difficult but it may be true,’ retorted the famously outspoken Westminster grandee. » | Rob Davies | Wednesday, January 30, 2013

George Osborne 'To Fight For Bankers' Bonuses' In Europe

THE DAILY TELEGRAPH: George Osborne is preparing to defend the right of British banks to pay large bonuses against EU plans to cap the pay-outs, it emerged last night.

The Chancellor is expected to argue against the crackdown at a meeting of European finance ministers on Tuesday, in spite of a fresh public outcry over the behaviour of bankers in the wake of the rate-rigging scandal.

Mr Osborne will argue that the proposals, to set a maximum 1:1 ratio of bonus to pay, are not the right way to curb City remuneration.

Officials insist that he had taken the same position before details of the Libor rate-fixing scandal emerged, and it has not changed, the Financial Times reported.

But the timing of the meeting is likely to make it politically risky for him to make such a case, with the Chancellor potentially facing the accusation of being in cahoots with bankers despite allegations about their reckless behaviour.

It comes amid outrage that Barclays chief executive Bob Diamond may still be in line for a multi-million pound pay-out following his resignation over rate rigging. » | John-Paul Ford Rojas | Saturday, July 07, 2012

My comment:

This is clearly a case of out-of-touch Osborne defending the indefensible. This man is not in power to serve the people, but to serve his cronies. – © Mark

Leading Article: Crony Capitalism and Craven Folly
THE INDEPENDENT: What is it about bankers' pay that makes the hard-pressed majority feel that finance capitalism is a conspiracy against them? Could it be that, more than three years after the credit crunch of 2008, we feel that the unfair rewards in the sector that caused the crisis continue unabated? Could it be that the rewards now seem even more unfair because we, the taxpayers, put up the security to bail out the banks? Could it be that we feel that politicians, who mouthed slogans about fairness and how they would put an end to excessive pay, have played a cynical game? Could it be that the way banks pay their top people seems designed to confuse us, even when we, the taxpayers, are their shareholders.

All of those. The fuss over the bonus awarded to Stephen Hester, boss of RBS, a nationalised bank, has been running all week on the basis that it was conveniently just under a round £1m. David Cameron, one moment has been saying it was nothing to do with him, the next moment claiming credit for having cut it to 60 per cent of what it could have been. As we report today, Mr Hester's bonus turns out to have been a highly coloured decoy designed to draw outrage away from the main story, which is that the total sum he can hope to collect from his three years in charge of the bank, already heading towards £39m, could reach £50m in a couple of years more if the share price performs well.

That we have been distracted by a tiny detail in a show of monstrous greed is bound to leave us feeling once again bamboozled.

As Paul Vallely argues on the previous page, something has changed in people's perception of fairness, and it is simply impossible for Mr Cameron and Nick Clegg, his accessory in inequity, to maintain that we are "all in this together" when such vast riches are lavished on a public employee at the same time as capping the benefits of the poorest. » | Sunday, January 29, 2012

Hester's £35.5m Pay Deal Fuels Renewed Anger Over Excess

THE INDEPENDENT ON SUNDAY: PM and Chancellor pressed to make urgent Commons statement as fairness issue reignites

Disclosure of the staggering figure amounts to political dynamite as the Prime Minister fought off suggestions that he should veto the near-£1m bonus, announced last week, for the boss of the taxpayer-owned RBS.

The extra bonus of £3.3m, revealed yesterday, would be on top of the £35.54m total remuneration package Mr Hester has received since joining RBS in 2008.

As the political storm surrounding executive pay at RBS grew, Ed Miliband called on David Cameron to intervene and urged RBS shareholders to block the £963,000 bonus at its AGM in April.
The Labour leader will call for Mr Cameron or George Osborne, the Chancellor, to make an urgent statement to the Commons tomorrow on the affair at a time when the Government is capping benefits for the poorest in society. It will cast doubt on the vow by the Business Secretary, Vince Cable, to tackle executive pay.

In a further ratcheting-up of pressure on Mr Hester, it also emerged that the RBS chairman, Sir Philip Hampton, has decided to waive his £1.4m shares bonus.

But the Prime Minister, who earlier this year made great play of calling for Sir Fred Goodwin to be stripped of his knighthood for presiding over failure at RBS, yesterday refused to bow to political pressure.

Apparently uncomfortable at being asked by journalists about the bonus following talks with the Afghan President, Hamid Karzai, at Chequers yesterday, Mr Cameron insisted that Mr Hester's bonus was "a matter for him" and that installing a new top team at the failed bank, which is 82 per cent owned by the taxpayer, would be even "more expensive" than it is now. » | Jane Merrick, Brian Brady, Mark Leftly, Emily Dugan | Sunday, January 29, 2012

Bankers Ready to Sue If Bonuses Too Small

THE DAILY TELEGRAPH: A growing number of bankers are considering suing their employer if they do not get the bonus they think they deserve this year, according to City employment lawyers.

British banks should brace themselves for claims from "disgruntled" bankers who will not roll over and accept lower bonuses than usual despite the huge public and shareholder backlash against out-of-control pay, legal experts have warned.

One claim for £1.5m is understood to have already made its way into the system last year, after a banker believed their 2011 bonus was too low.

The case is believed to have been rejected before it got to court, with lawyers acting for the bank branding the claim "whimsical".

Judges are also said to be unsympathetic towards bankers' claims that their bonuses are too small in the current climate.

However, City lawyers said an increasing number of bankers were building cases in preparation of lower bonus payouts and were prepared to fight it out at court. Read on and comment » | Louisa Peacock, Jobs Editor | Monday, January 02, 2012

My comment:

I see no difference between the top-feeders and the bottom-feeders. They are all a scourge to a decent society. Let the bastards sue! Incarcerate all those that can be incarcerated. They got us into this mess; they should pay the price. – © Mark

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PM Is Protecting Banker Bonuses, Claim Lib Dems
THE INDEPENDENT: The Liberal Democrats are making a final attempt to persuade David Cameron to rein in bankers' bonuses amid growing public anger over the imminent payout estimated at £7bn.

Liberal Democrat MPs believe that Mr Cameron, rather than the Chancellor, George Osborne, has emerged as the main obstacle to tough action against the bankers. They are furious that Downing Street signalled a climbdown this week while talks continued with the big banks on a new settlement covering bonuses and lending to small businesses and first-time buyers.

"You don't wave the white flag in the middle of tough negotiations," Baron Oakeshott of Seagrove Bay, a Liberal Democrat Treasury spokesman, told The Independent yesterday. "This is the moment of truth on fairness for our Coalition. We can't allow a bonus bonanza in the age of austerity." >>> Andrew Grice, Political Editor | Friday, January 14, 2011

Mark Steel: We Owe It to Bankers to Feel Their Pain
THE INDEPENDENT: At last someone has dared to defend the oppressed people of the banking community. Bob Diamond, chief executive of Barclays, who himself has to suffer the trauma of an £8m bonus, said yesterday that the bankers' "period of remorse and apology should be over". And you feel his pain, because the first words to cross your mind when you see a banker are "remorseful and apologetic". Then you're left worrying, "Oh, how I wish the poor souls were slightly less burdened with remorse about their bonus, and didn't apologise with such agonising sincerity about putting it into their wife's name in a series of untraceable accounts based in uninhabitable islands off Ecuador."

But at last they've learnt to stand up for themselves, and Bob Diamond has emerged as their Martin Luther King. Soon the whole banking community will declare: "Say it out loud, I'm 27 million quid in the black and I'm proud." >>> Mark Steel | Wednesday, January 12, 2011

Banks Given Go-ahead to Pay Unlimited Bonuses
THE GUARDIAN: Ministers cave in to City and reject calls to tackle highest earners as No 10 seeks face-saving deal

Britain's banks were given the go-ahead tonight to pay unlimited bonuses, drawing to a close a two-year political battle to rein in the City.

After months in which a series of government ministers of all parties have threatened a toughening in the stance over City bonuses, Downing Street said the government did not intend to intervene in the pay of the UK's top bankers.

Ministers are instead hoping for a face-saving deal in which the banks agree to lending targets and improve the way they disclose their pay deals. One of the options being discussed is releasing information on the five highest paid individuals at each bank.

"We've made a broad statement which is about the need to see some restraint and some responsibility from the banks, but we are not going to set bonus pools for individual banks," the prime minister's spokesman said. >>> Patrick Wintour, Jill Treanor and Allegra Stratton | Monday, January 10, 2011

THE INDEPENDENT: Tough talk on bank bonuses comes to nought: The Government owns 83 per cent of RBS. So why does it claim to be powerless to halt another round of enormous bank bonuses? >>> James Moore, Deputy Business Editor | Tuesday, January 11, 2011

Cameron* Says Banks 'Should Pay Smaller Bonuses'
BBC: Prime Minister David Cameron has called on banks to pay smaller bonuses this year.


Speaking on the BBC's Andrew Marr show he said banks should be more "socially responsible".

The Royal Bank of Scotland (RBS), which is majority-owned by the taxpayer, should not be "leading the way" on bonuses but should be a "back marker", he said.

However "micro-managing" the banks was not the answer, he added. >>> | Sunday, January 09, 2011

* Cameron talking baloney! He’ll never do anything about bankers and their despicable, excessive bonuses. He is weak and cowardly. – © Mark

Fury as Banks Pay Out Bonuses of £7 Bn
DAILY EXPRESS: BRITAIN’S bailed-out banks sparked outrage last night as it emerged they are about to pay £7billion in bonuses.

The nation’s five largest – Royal Bank of Scotland, HSBC, Barclays, Lloyds TSB and Standard Chartered – are on the verge of issuing bumper payouts to staff.

Barclays is expected to lavish £2.5billion in bonuses while taxpayer-owned RBS is thought to be considering a bonus pool of over £1billion.

Signalling a return to pre-recession payout levels while ordinary families suffer, a think-tank estimates City bonuses for 2010 at £7billion.

Last night banks were accused of failing to change their “culture of greed and excess”. RBS – which is 84 per cent state-owned after a £45billion taxpayer bailout – is said to be considering a £6.8million package for chief executive Stephen Hester.

After foregoing a £1.6million bonus last year, Mr Hester, who admits even his parents think he is paid too much, is expected to accept the windfall. >>> Martin Brown | Monday, January 10, 2011

HSBC Doubles Salaries Of Investment Bankers
SKY NEWS: Banking giant HSBC is doubling the basic pay of hundreds of its senior investment bankers, Sky News can reveal.

Sky's City editor Mark Kleinman reports that the bank began informing staff in London, Hong Kong and New York about the pay rises last week.

A source close to the bank said some senior managers outside the global banking and markets (GBM) division were also being handed the pay increases.

HSBC's move comes ahead of the annual bank bonus round in the New Year.

"As UK politicians intensify warnings about the payment of mega-bonuses, HSBC may legitimately be able to point to a sharply reduced bonus pot by virtue of the fact that it will have only recently awarded large salary increases," noted Kleinman. Read on and comment >>> Hazel Baker, Sky News Online | Tuesday, November 16, 2010

A Year After the Crunch, It's Boom Time Again for Bankers
A year after the global economy was brought close to collapse by reckless lending, investment banks are preparing to announce huge profits. Photo: Times Online
TIMES ONLINE: Investment bankers are about to enjoy a record bonus season as confidence surges in the financial markets.

Just 12 months after the global economy was brought close to collapse by reckless lending — forcing banks to turn to taxpayers for help — stock markets in London and New York are enjoying one of the strongest bull runs in decades and investment banks are preparing to announce huge profits.

In Britain, job losses slowed in the three months to August. Unemployment rose by 88,000 to 2.47 million, the lowest rise since July last year, and youth unemployment fell slightly. China reported strong trade figures and oil hit a high for the year.

Goldman Sachs, which employs 5,500 people in London, is expected to report a sharp rise in third-quarter profits today. Analysts estimate that, barring a major setback, the average London worker at Goldman will receive about $748,000 (£467,000) in salary and bonuses — 13 per cent higher than 2007 and more than double the 2008 average. >>> Patrick Hosking and Christine Seib | Thursday, October 15, 2009

THE TELEGRAPH: Goldman Sachs on track to pay out record $22bn as profits jump to $3.19bn: Goldman Sachs is under fresh fire after revealing its compensation pot is on track hit a record $22bn (£13.5bn) this year after the bank set aside more for pay and bonuses in nine months than in the whole of last year. >>> James Quinn, US Business Editor | Thursday, October 15, 2009

TIMES ONLINE: Goldman Sachs reignites pay row with 46% rise >>> Christine Seib in New York | Thursday, October 15, 2009