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Cut 'excessive' bonuses, Boris Johnson tells bank chiefs
Pippa Crerar18 Jan 2010
Boris Johnson today wrote to global banking chiefs urging them to scale back “excessive” bankers' bonuses.
The Mayor said he was “shocked and baffled” the banks had failed to acknowledge public outrage over the multi-billion-pound payouts.
His letter comes ahead of a meeting tomorrow with UK heads of banks, thought to include JP Morgan, Goldman Sachs, Citigroup and Credit Suisse. Mr Johnson stepped up his criticism of the banks after being knocked by claims he was defending the wealthy few at the expense of the public.
He came under fire last week for
lobbying Chancellor Alistair Darling to drop plans for a bonus supertax, claiming it would drive 9,000 bankers out of London.
His praise of bankers for making a vital contribution to the British economy has been an unpopular stance when many people blame them for the financial crisis. But the Mayor today conceded that some of the bonuses were over-the-top when many Londoners were struggling.
In his strongest criticism to date, he urged the bank chiefs to show “much stronger leadership” on the issue. He told the Standard: “Nobody can possibly defend the huge sums of bonuses being awarded. The banks should not be paying out huge bonuses as though it was business as usual. They have to show they recognise the game changed when the taxpayer bailed them out.”
Mr Johnson suggested the banks should skim money off bonuses to set up a fund to help small and medium-sized businesses in the capital.
In his letter, seen by the Standard, he pledged to “strongly defend” the financial services industry from the threat of punitive taxation and burdensome EU regulation.
But he added: “Equally, I am personally shocked and indeed baffled by the persistence of an excessive bonus culture in some parts of the sector at a time when times are extraordinarily difficult for millions of Londoners and thousands of businesses.
“In order for me to champion and support successful financial services, it is crucial that the sector itself demonstrates much stronger leadership.
“Collectively, financial services firms must take much greater account of public opinion and set justifiable remuneration packages accordingly, in the light of the unprecedented support given to the financial system over the last two years.”
Reader views (18)
@R.F.York, Yorks, UK
Why?
- Abominable Snow Man, London, 19/01/2010 12:46
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@ R.F.York, Yorks, UK
You'll find most banks have donated around $1m each todate to that fund. Funny that Bob Crows unions have yet to donate a penny.....
- Steve, London, 19/01/2010 12:14
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The circle line may no longer go round in cirles but we have Boris spinning like a catherine wheel!
I suppose next time he speaks to bankers he will praise them for the money they earn in London!
- Melvyn Windebank, Canvey Island, Essex, 19/01/2010 11:54
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After the last 3 weeks of London misery with its excessive taxation but withLondon transport blocked, no garbage collections and streets left unattended you would think that he had better things to do than complain about people in employment getting paid and nowalsoabout plastic bags?!
- Jacqueline, Hampstead, London, 18/01/2010 20:33
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How many in Boris's GLA committees are paid for other political positions? I can think of the Bromley guy who probable 'earns' well over £150,000 for his combined Council job and GLA jolly. Get a grip at home first Boris.
- Archie, Bromley, London, 18/01/2010 18:25
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Nothing wrong with bonuses except they reward short term profitability? Did anyone have to pay them back when the banks made a loss.
Give bonuses OK But make them 25% in cash and the rest in Shares which would only be released to the bonusee after (say) five years. This would encourage long term thinking and planning and remove the "quick buck now" mentality which led to the credit crunch in the first place.
- Roy, Little Burstead (Billericay) UK, 18/01/2010 16:54
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Me think more and more that Boris is not doing much! Surely he should be working on underperforming policing and bad transport in Central London?! Also it took them 2 weeks to clean my CENTRAL LONDON street!!!!
- Steveo, London NW1, 18/01/2010 16:30
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Boris is unfortunatel;y showing how uch he doesn't understand the City and Canary Wharf. From day one of working for a bank particularly investment banks you are educated to maximise every ticket you write and it is imbred as a result. He read the threat to move wrongly and he is trying to back the public opinion now without declaring what is excessive. Given he felt receiving £250k for writing garbage was deemed by him to be 'chicken feed' heavens knows what figure constitutes excessive.
Perhaps he should belt up and mores the case ask the right people whats really happening.
The more rubbish he spews out the more he makes Ken Livingstone an attractive choice!!
- Robert Marshall, LONDON, 18/01/2010 16:07
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seems like it's only boris who's trying to take account of public opinion, though it obviously grates to criticise his rich buddies. his half-hearted criticism of the money-spewing finance companies is an about turn following obama's position and the very idea that these companies show charity and voluntary restraint is like telling a pig in a trough to eat with its mouth closed. you'll find little praise for your weak reproach here, boris.
- Marino, london, 18/01/2010 15:30
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What exactly would Boris describe as an 'excessive' bonus?
These people do not deserve bonuses, they should be made to go without bonuses for the recession's duration as a punishment for making those of us that are actually suffering this recession..suffer!
- Student, London, 18/01/2010 15:23
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Well, that's told them..!! Boris will now give them all detention if they don't comply. Phew! Financial crisis over as bankers fall over themselves to give back bonuses to taxpayers. Well done! Boris, what a jolly good sort, you are..Guffaw..!!!
- Paul, Feltham, 18/01/2010 15:03
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we have heard it before mr boris ,it's the same charade again and again.
- Fodil, london,uk, 18/01/2010 14:59
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Bozza is my hero. Bozza for PM, not dosy Dave.
- Top Dollar, Hounslow, 18/01/2010 14:04
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Good on you Mr.B.
those people you were trying to protect last week ARE thieves and they deserve no protection.I should let them go and do their thieving in Geneva.
- J.Martins, london, 18/01/2010 13:56
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This man is all over the place. He does not know whether to back his chums or go with the majority of people who think bankers are vastly over-paid with taxpayers' money. I wonder if Cameron has a word about this issue. As previously, Boris made the wrong call on this.
- Darren, london, 18/01/2010 13:30
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Well done Boris, Last friday you were defending the bankers bonus's, three days later you have completely changed your tune. Why the change of mind? could it be that you quickly saw a second term as mayor going out the widow? Just another pathetic politician trying to save his skin. How can anyone take this buffoon seriously?
- Jimmy, London England, 18/01/2010 13:19
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Rather than pay obscene bonuses to bankers - the profits should be donated to the Haiti disaster fund.
- R.F.York, Yorks, UK, 18/01/2010 13:12
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Well done Boris for at last joining common sense on this issue.
I think that I am right to say that most high profile bank's profit comes from their dealing rooms.
My question is:
For every pound/dollar made in these rooms there must be an equal loss!
Who is losing and by how much?
PKJ
- Paul Knill-Jones, bristol, 18/01/2010 13:06
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