Institute of Directors' Simon Walker warns of "long-term damage to the reputation"
of high wages of RBS and Barclays
The
influential head of the Institute of Directors has launched a stinging attack
on pay packages delivered at the Royal Bank of Scotland and Barclays, which
together paid 523 bankers over 1 million pounds in the year of scandals hit 2012.
Simon Walker, director general of the Institute of Directors, told an audience of public relations executives that the payments were "unacceptable".
"Thousands of people in these two companies only earn even more than the prime minister. This is in the companies affected by the scandal that have had a successful time of year," said Walker.
Barclays was fined £ 290m for rigging Libor last year, while RBS paid £ 390m for trying to manipulate the key reference rate, while the two banks were also affected by the mis-selling scandal.
Walker spoke as one of the greatest directors of City funds, F & C Asset Management, set out to write to the president about 60 financial firms worldwide to warn that "the public perception can create unfair overpayment long-term damage to reputation. "
Fund managers F & C are asking "joined" thinking about how banks are managed in terms of "ethical performance, risk management and incentive system for the executives of banks - as expressed in terms of their remuneration ".
"There is growing need for executive management of the bank and the bank together to promote the adoption of corporate values", F & C will say. Fund managers are to believe Barclays and HSBC - fined £ 1.2bn for money laundering offenses in the U.S. - For the adoption of opinions of cultures and values.
Walker was referring to Barclays and RBS in his speech in which he also referred to the "cause for concern" caused by the lack of public confidence in capitalism, partly caused by the "rewards" for breach of salary levels.
"Now I know that Antony Jenkins [CEO] and Sir David Walker [president] of Barclays are working hard to introduce a new culture in Barclays in particular. And as you might imagine given my job, I'm not a rabid anti-capitalist. But I still think This situation is unacceptable. "
"Shareholder value has been destroyed, capitalism has been given a bad name, key market measures have been manipulated to benefit cynical, taxpayers have spent billions to bail out banks, yet large packages rewards are being delivered, "Walker said.
"So I think it is understandable that many people are concerned about the state of rewards for failure, and the disastrous effects of short-termism in some companies. IOD Many members are concerned about exactly the same things," he said.
Addressing the audience of PR, Walker said: "People from outside the communications industry sometimes think it is possible to turn anything - the proverbial turd can be polished fact, if I may use the metaphor, but sometimes can not - sometimes. underlying facts are the problem. "
Fund managers F & C call the banks "as a whole" to account for "past transgressions" even when the administration has left after misdeeds: "This means that regulatory or legal sanctions should affect the incentive pool is distributed to executives. "F & C said on the impact of EU plan to limit bankers' bonuses in times salary, or twice in some circumstances.
Walker also picked up this: "Just look at extra cover EU - wrong and counterproductive as it is, the behavior of some of our banks makes it difficult for anyone to be by her side to fight against him credible. They all are damaging British business, focusing only on their own short-term self-interest. "
Simon Walker, director general of the Institute of Directors, told an audience of public relations executives that the payments were "unacceptable".
"Thousands of people in these two companies only earn even more than the prime minister. This is in the companies affected by the scandal that have had a successful time of year," said Walker.
Barclays was fined £ 290m for rigging Libor last year, while RBS paid £ 390m for trying to manipulate the key reference rate, while the two banks were also affected by the mis-selling scandal.
Walker spoke as one of the greatest directors of City funds, F & C Asset Management, set out to write to the president about 60 financial firms worldwide to warn that "the public perception can create unfair overpayment long-term damage to reputation. "
Fund managers F & C are asking "joined" thinking about how banks are managed in terms of "ethical performance, risk management and incentive system for the executives of banks - as expressed in terms of their remuneration ".
"There is growing need for executive management of the bank and the bank together to promote the adoption of corporate values", F & C will say. Fund managers are to believe Barclays and HSBC - fined £ 1.2bn for money laundering offenses in the U.S. - For the adoption of opinions of cultures and values.
Walker was referring to Barclays and RBS in his speech in which he also referred to the "cause for concern" caused by the lack of public confidence in capitalism, partly caused by the "rewards" for breach of salary levels.
"Now I know that Antony Jenkins [CEO] and Sir David Walker [president] of Barclays are working hard to introduce a new culture in Barclays in particular. And as you might imagine given my job, I'm not a rabid anti-capitalist. But I still think This situation is unacceptable. "
"Shareholder value has been destroyed, capitalism has been given a bad name, key market measures have been manipulated to benefit cynical, taxpayers have spent billions to bail out banks, yet large packages rewards are being delivered, "Walker said.
"So I think it is understandable that many people are concerned about the state of rewards for failure, and the disastrous effects of short-termism in some companies. IOD Many members are concerned about exactly the same things," he said.
Addressing the audience of PR, Walker said: "People from outside the communications industry sometimes think it is possible to turn anything - the proverbial turd can be polished fact, if I may use the metaphor, but sometimes can not - sometimes. underlying facts are the problem. "
Fund managers F & C call the banks "as a whole" to account for "past transgressions" even when the administration has left after misdeeds: "This means that regulatory or legal sanctions should affect the incentive pool is distributed to executives. "F & C said on the impact of EU plan to limit bankers' bonuses in times salary, or twice in some circumstances.
Walker also picked up this: "Just look at extra cover EU - wrong and counterproductive as it is, the behavior of some of our banks makes it difficult for anyone to be by her side to fight against him credible. They all are damaging British business, focusing only on their own short-term self-interest. "
.jpg)
.jpg)
