Banks must disclose millionaire staff

A UK government sponsored report has recommended that Banks must reveal how many of their employees are paid more than £1million per year.

Sir David Walker, who led the report, also recommended that non-executive directors should be provided with more responsibility for pay and risk.

The report also said that half of the bonuses paid to staff should be differed from three to five years.

As per report, the Financial Services Authority should be given the power to restrain any excessive pay deals that could pose risk to the banking sector.

A bank's pay committee should hold direct accountability for the salary of highly paid staff.

Other important recommendations include, non-executive directors should give 50 per cent more time to the job and board's chairman should face annual re-election.

Richard Lambert, director of CBI, has welcomed the report

Speaking on the findings of the report, Mr. Lambert said, "Sir David Walker has set out a sensible package of proposals that can strengthen the role of boards in identifying and managing risk."

It may be noted here that most of the economists have been blaming huge pay and bonus packages in the banking sector for the recent economic crisis.