Friday, 25 September 2009

G20 leaders divided over "fat cat" pay

Previous postings on HR Case Studies have signposted this week’s G20 leaders' meeting in Pittsburgh as the time when new rules for bankers’ bonuses could be agreed and implemented. It currently seems as if Germany’s Angela Merkel (possibly influenced by this Sunday’s elections) and President Sarkozy of France are the leaders who may be prepared to take drastic action on “fat cat” pay. Britain and the US have been seeking a compromise to resolve the dispute over bonuses by proposing that banks which did not carry sufficient capital should be required to claw back bonuses. It also seems likely that the G20 summit will be in agreement over backing ideas such as clawing back pay in the event of poor performance, and paying some bonuses in shares.

G20 moves against bankers' pay and bonuses

  • Place your bets now! Do you expect there to be any major changes to the payment of bonuses in the finance sector as a result of the Pittsburgh summit?


  1. Hello Mr Salisbury

    Sometimes it feels like there is just you and me occupying this virtual space. I must spread the word – as it would be great to see some healthy dialogue and debate in the world of HR Case Studies!!

    It’s hard to imagine that there will be no changes to the payment of bonuses – whether they will be major or not will come down to the strength of character of those making the decisions. Minor ones it is then!

    What I’m interested in is how such changes will be enforced/regulated and then see how soon it is before financial institutions start devising some other ‘creative’ incentives to attract and retain those high flying risk takers that they need to make their businesses tick.


  2. EBTG: Yes, please do spread the word! I do sometimes also feel that the occupants of Planet HR are too busy "doing" to take time out to reflect on some of these important issues!

  3. Mr Salisbury and Mr Anonymous its really interesting to read your conversations and viewpoints... Although I am not an HR manager, I will hopefully add a few points to spread the word