Thursday, July 16, 2009

Greater Transparency for Banks

Sir David Walker has published an initial 140 page report on banking governance that calls on banks to disclose more details about their highest paid employees, and to impose strict rules wrt deferring bonus payouts for at least three years.

Sir David calls on executive board members, whose pay is above the median, to maintain a shareholding equal to their total historic compensation.

Sir David also calls for a far greater role for non-executive directors and large shareholders to oversee companies, and challenge them about their strategy.

Risk committees should have a greater role, including the power to block large transactions.

The final report will be published in November.

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