Ministers Hit Out At Bank Bonuses
Seven EU Finance Ministers, including Sweden's Anders Borg, want to limit fat cat bonuses in the banking system. In an op-ed article published in several European newspapers Friday, they say that any bonuses should be decided annually.
"Guaranteed bonuses for more than one year should be prohibited. Bonus payments should be spread out over a few years and paid bonuses should reflect the individuals and banks' true performances over time", they write. "Banks must also offer complete transparency by publishing detailed information about their compensation policy. Finally, each country must make sure that's its banks are compliant with these rules."
The calls come as finance ministers from the G20 group of nations meet in London Friday to discuss the fall out following the latest recession, and how efforts to limit the impact of the financial crisis have panned out.
Head of communications at Sweden's Swedbank, Thomas Backteman told Swedish news agency TT that it the proposed rules would not be a problem for Swedish banks, saying that Swedbank already publishes bonus levels in its annual reports.