Banks need to be ‘sensitive’ over bonuses, Nick Clegg claims

11 January 2011

Banks are being urged to show some "sensitivity" to public concerns when paying executives bonuses, the coalition government’s deputy prime minister has said.

In an interview with the BBC, Nick Clegg, the UK’s deputy prime minister, said that the government is currently in discussion with financial services providers over the size of their bonus pools.

Mr Clegg, who was quoted by Reuters, told the news provider: “All I'm saying, which I think is totally reasonable and most people in the country I think would agree with this, is that therefore, the people who run those banks should show extra sensitivity and transparency in the way in which they reward themselves.

“The directors of those banks have been asked to do a job, to fix those banks and make them healthy again, that job isn't complete yet, and until it is, I think that should be reflected in the remuneration."

His comments follow a report by the UK’s Sunday Telegraph, that Stephen Hester, chief executive at the Royal Bank of Scotland, will be rewarded with a £2.5 million bonus.

By Jim Ottewill

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