Alistair Darling plans to publish banking remuneration packages
Plans by the Treasury to force financial companies in the UK to make public the pay, bonuses and pension arrangements of those earning above the average for the industry have been discussed in more detail today. The idea is that by opening up those who receive "excessive" remuneration packages this will allow more scrutiny by the media, public and shareholders and ultimately should give better value for money for companies.
However, despite the fact that this particular plan would likely affect between 200 and 300 of the city's top traders outside of the boardroom, it is highly unlikely to ever reach the statute book. This is, in all but name, a PR stunt which is aimed at those who have criticised the UK government for its handling of the banking industry and the excessive risk-taking in the past. The more pressure which is placed upon the city as a whole the more chance that the main financial companies operating in the UK will look to move their operations overseas, which will ultimately impact upon the position of London in the worldwide financial sector.
It is proving very difficult to find a balance between transparency and encouraging growth in the UK financial sector. However, if the authorities are not careful they could seriously hurt the long-term future of the London markets.
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