Bankers will take bonuses because they weren't praised last year,
Lord Jones, the chairman of HSBC's international advisory board, has said that bankers will take bumper bonuses this year because those that sacrificed big cash rewards last year received "not one jot of praise".
https://teakdoor.com/images/imported/2011/01/831.jpg Lord Jones believes banks face compelling business reasons for not reducing pay-outs Photo: John Robertson
Speaking to The Daily Telegraph, the former Labour minister conceded that the "lack of sensitivity" among some parts of the banking community continued to amaze him.
But he added that the bosses who had foregone their bonuses had very little incentive to do the same again.
"To be fair, when the chief executives of the major banks sacrificed their contractual entitlements to bonuses over the past couple of years, or gave the cash to charity, not one jot of praise or even understanding came their way," he said.
He argued that the banks instead faced compelling business reasons for not reducing pay-outs. "So why, they may think, bother [reducing bonuses] when the rest of the world's banks are enticing staff away every day?"
Lord Jones, who was also former director general of the CBI, warned the Government not to go further than the rest of the world in its attempt to curb City pay.
"Tax bonuses in isolation - that is, without the rest of the world following suit - and talent will leave the UK," he said.
The comments from the City heavyweight come amid mounting political tension about the investment bank bonus payments which will be finalised over the next few weeks. Experts have estimated the big banks could award nearly £7bn in bonuses this year.
Ed Miliband, the Labour leader, called for the Coalition to extend a £3.5bn tax on bankers' bonuses.
Credit Suisse announced it is preparing to extend the tough new pay restrictions on a greater number of its bankers. The Swiss giant, which was criticised last year for awarding its chief executive Brady Dougan shares worth SFR71m (£42m), said it was lowering the threshold for deferred bonus restrictions from SFR125,000 to SFR50,000, leaving more employees subject to the measures.
Bob Diamond, the new chief executive of Barclays, is expected to be asked to forgo his bonus as part of a hostile grilling by the Parliamentary Treasury Select Committee on Tuesday.
Mr Diamond, who has traditionally been a robust defender of banker bonuses, has been called to give evidence to the MPs on banking competition.
Bankers will take bonuses because they weren't praised last year, says Lord Jones - Telegraph
Deery me , its such a thankless job being a banker, especially when you're incompetant and have to wait a year for money you don't deserve. Poor things.
