Britain leads the world - from behind.....

It’s good to know that Gordon Brown, who is reported today to be ‘very angry’ about bank bonuses, is saving the world again. In a demonstration of his fury he said “We are leading the world in sweeping away the old short term bonus culture of the past and replacing it with a determination that there are no rewards for failure and rewards only for long-term success.” In order to decide how to implement this, the Treasury announced an inquiry to take place into general UK bank management and decide what to do about the pay and bonuses of top executives in the industry.

However Treasury minister Yvette Cooper is perhaps more aware of actions already taken in other countries. Last week US President Barack Obama announced a $500,000 (£355,000) limit on executive pay at US firms that needed substantial fresh government aid. Ms Cooper said there was “a lot to be said” for going down the same route as the US and banning future cash bonuses for bank staff.
Meanwhile, in France, President Nicolas Sarkozy has already announced that there would be no bonuses in 2009 at banks that had received state aid. He also said he would consider a cap on salaries for top managers of companies that received public funds, and said that the bonuses paid to traders who speculate also had to be curbed.
Germany also plans to ban bonuses and has set a 500,000 euro limit on executive pay at rescued banks. Salary caps have been discussed in Russia , and the Australian prime minister has called for an end to bankers “unrestrained greed”.
Perhaps the Prime Minister would find it helpful to read the BBC’s Q&A:Bank Bonuses, which explains the reasons for the controversy and how a number of countries are dealing with it.