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Welsh Affairs

Well, the Lobby briefing was wrong then. Those earning less than £39,000 will receive their bonus in cash. Those earning more will receive their substantial bonuses in the form of shares paid over three years, but if their performance over that time is deemed to have fallen off, the bonus will be clawed back. The overall performance of the institution will also be taken into account. Those arrangements are in line with the G20 recommendations. However, the bonus culture has to change. There is a massive disconnect between the financial services industry and the rest of the real economy. People stand aghast when institutions that have caused them personally to lose their jobs, see their businesses close and, in certain circumstances, lose their homes, still have a culture of so-called performance-related pay, with massive bonuses, the like of which is not replicated in any other industry. If someone is paid £250,000 or £500,000 and their wages are doubled, tripled or even quadrupled, I cannot see how they can work any harder. There are only 24 hours in a day and seven days in a week. I cannot see how these huge alleged incentives can actually act as any incentive at all.