Sunday, 13 September 2009

Learning from Chelsea

A former non-executive director of Barclays Bank has suggested (possibly with tongue firmly in cheek!) that the FIFA-imposed ban on Chelsea registering any new players until 2010 could be used as a way of limiting salaries in the banking and finance sectors.

His proposal is that banks who are caught inducing employees to leave their existing employers by offering guaranteed bonuses should be banned for a period of time from further engagement in the recruitment market

The idea has already been rejected by Lord Myners (the UK's City Minister) who believes that there are already enough safeguards under existing contractual law to address the problem of inducements to employees to breach their contract of employment. But the minister himself has not been able to suggest any viable alternative.

Chelsea transfer scandal has much to teach the City on bonuses

  • Is this suggestion simply unworkable, or could it be imposed on the banking and finance sector?
  • Do you think that it is reasonable that (particularly in our current economic climate) employees in this sector should be able to demand such high salaries?
  • Can you think of any other way of controlling salary-drift in this area?

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