Jul 16 2009

U.K.'s Brown Suggests Belated Bonus Plan for Execs and Traders

By kyle stock

U.K. Prime Minister Gordon Brown is making Obama look like Gordon Gecko.

This morning, he threw his shoulder behind a plan that would force banks to hold half of bonuses for senior traders at least five years and require firms to disclose compensation for top traders, not just top executives.

"Remuneration has got to be long term," Brown told Parliament. "In other words, it is only on the basis of long-term performance that we can guarantee the bonus system in the future.

The plan was drawn up by David Walker, ex-chairman of Morgan Stanley International, who was asked by the British government to review pay policies.

The U.K.'s Financial Services Authority has also threatened to force banks to hold more capital if they grant what it considers overly generous bonuses.

Stateside, Treasury Secretary Timothy Geithner has hinted at similar restrictions, though he has not thrown around a figure comparable to Brown's five-year plan.

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