Friday, 14 August 2009

What a difference a year makes, or does it?

Back in June 2008 Kitty Ussher, then a Treasury minister, came out with this godawful statement:
"We will resist the calls that have been made for direct regulation of executive pay," Ms Ussher will say in her speech. "Of course, remuneration packages should be strongly linked to effective performance, and incentives should be aligned with the long-term interests of the business and shareholders, and we don't support rewards for failure."

But she adds: "I'm clear that executive pay is a matter for boards and shareholders, not for governments and regulators."

Speculation this morning:
Senior cabinet ministers are so disappointed with the Financial Services Authority’s new pay rules, released this week, they are considering whether legislation may be needed to crack down on bankers’ bonuses.

But later retreat:

U.K. Business Secretary Peter Mandelson Friday said the government isn't considering legislation to toughen bank pay rules.

Speaking to the British Broadcasting Corp., Mandelson was asked if the government is considering legislation because of concerns about the Financial Services Authority's new pay rules.

"No, I don't think legislation is being considered," he said. "The job of the FSA is to provide the regulatory framework within which banks and other financial institutions operate."

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