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Europe could get tough with Bankers

30/04/2009

The European Commission could act to reclaim some of the wages paid to City bankers.

Europe's internal markets commissioner, Charlie McGreevy, said he would put forward legislation which would give regulators a role in deciding bankers' pay packets.

Mr McGreevy has also noted the commission would look at the pay-offs made to senior employees when they have their contracts terminated.

He went on to explain that there had been far too many "perverse incentives" and pay arrangements that had encouraged "excessive risk taking for short-term gain".

The commissioner has also suggested there be a series of common rules that would apply across the alternative investment industry.

These would ensure that managers and funds be notified to authorities, tighter controls be enforced and managers required to disclose regular comprehensive information to regulators.

The UK government had approached the boss of the Royal Bank of Scotland Sir Fred Goodwin and asked him to forgo some of his £16m pension, after the bank returned poor results.

 

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