PM: No more bonus culture

10 October 2008

The prime minister is "angry" at "irresponsible" bonuses and is looking to clamp down on them, it has been revealed.

Categories: Pay & reward

"The days of big bonuses are over", according to the prime minister.

In an interview with GMTV, Gordon Brown stated that one of the conditions of government help for banks is reaching an agreement on remuneration packages for executives.

Although the majority of problems have been with the US system, there have also been "abuses" in the UK, Mr Brown claimed.

"Our economy is built around people who work hard, who show effort, who take responsible decisions, and [where] there is excessive and irresponsible risk-taking, that has got to be punished," he said.

Mr Brown added that he is "angry" at what he dubbed "irresponsible behaviour".

Recently, Lord Adair Turner, chairman of the Financial Authority Services (FSA), announced the body will also be looking at bonus payments made by banks.

Speaking to BBC News, Lord Turner explained the FSA would look to intervene in situations where it finds payments are encouraging workers to make risky investments.

However, he did add that the role of bonuses in the current financial crisis should not be overstated.ADNFCR-1459-ID-18821521-ADNFCR

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