Tuesday, November 30, 2010
Why the Treasury won’t illuminate 2010 bank pay
The new law on executive remuneration in financial services has been shelved, as the prime minister confirmed during Prime Minister's Questions yesterday.Why? Well, you probably won't need telling that those who run British banks have for some time been telling me how much they dreaded having to reveal how many of their people earn seven figures and above. Over a 10-year period, the share price performance of Britain's banks has been appalling (in the case of Royal Bank of Scotland and Lloyds/HBOS) or lousy (Barclays and HSBC). Over the same period (you probably won't need reminding) the remuneration of top bankers has soared. As for dividends, after the crash of 2008 banks either eliminated them (RBS, Lloyds, Barclays) or slashed them (HSBC).