The Prime Minister

Gordon Brown said: “He makes some very clear recommendations which I believe will be adopted. There have been excesses, it is seen by the public as irresponsible and unfair, we have got to take the action.”

The consumer's champion

Liberal Democrat shadow chancellor Vince Cable: “It is vital for the stability of banks that both pay and bonuses are fully declared and transparent. I am very pleased to see that this has been taken up by Sir David. Transparency has done wonders by opening the lid on Pandora's Box in Westminster; it is high time that the City was subject to the same level of scrutiny.

“But it has to be obligatory through the FSA and not just voluntary. In banks like RBS, the demigod status granted to Fred Goodwin prevented credible scrutiny. So the news that bank boards may be forced to show they can challenge a chief executive is a belated but welcome step in the right direction.”

The business leader

Richard Lambert, CBI director-general: “Sir David Walker has set out a sensible package of proposals that can strengthen the role of boards in identifying and managing risk. We welcome the emphasis on ensuring balanced boards with the right skills, and on ensuring investors are active and engaged in scrutinising business strategy. The report focuses on financial institutions, so it is able to recommend specific measures that reflect banks' complexity and critical role in the economy.

“This is much more effective than trying to make corporate governance recommendations which apply to all companies regardless of their circumstances. But to help avoid another financial crisis we need changes in the way we regulate systemic risk. Debates about corporate governance should not distract us from the need for effective financial regulation.”

The banker

British Bankers Association chief executive Angela Knight: “We have already seen many of the Walker proposals put into action and bringing benefits. These proposals would effectively bring all firms' governance up to the standards of the best, and are therefore to be welcomed. The next step — and the key step — will be to get similar high standards adopted internationally.”

The lawyer

Nicholas Stretch of CMS Cameron McKenna: “The plan to defer a substantial part of incentive payments for five years is unreasonable and does not reflect the risk inherent in banking. Walker has not understood that this will be an unacceptable sea change for senior traders, and that people move or even retire within a five-year period.

“This will put the UK financial sector at a huge disadvantage in comparison with European and other centres. It is also turning into a bonanza for retired bankers. The banks need them as non-executive directors, the FSA wants them as regulators and now they will be needed to test prospective non-execs before the FSA approves the appointment.”