Proposes strict measures on corporate governance, pay and a powerful Chief Risk Officer role
The Government has published a wide ranging review of corporate governance, regulations and bank pay drawn up by Sir David Walker.
The recommendations published today go beyond the July draft proposals and include a new law designed to force banks to publish the number of staff earning more than $1m.
The final review also suggested that boards put all their directors up for annual election, including the chairman.
Other proposals include the appointment of a powerful Chief Risk Officer who can only be sacked with the full agreement of the board.
Walker’s proposals have been met with criticism in the City where there have been complaints that the new proposals will prompt an exodus of talent and business.
Corporate Britain should be protected from the sweeping reforms on bonuses and risk-taking said the Institute of Directors (IoD), according to the Times newspaper.
The IoD said that some of his proposed measures are too draconian and should not be forced on companies outside the financial sector, reported the paper.
The Government gave its seal of approval to the new proposals. Chancellor Alistair Darling said: "Sir David's proposals are the blueprint for how banks must be run in the future. The Government strongly supports his recommendations and will take steps to implement them as soon as possible."
Sir David's review was commissioned by the Government in February to explore failures of corporate governance and management of banks and other financial firms. The draft version in July proposed 39 recommendations, most of which have been retained in the final draft.
What the papers say:
Walker review: main points
Walker review urges bank chairmen to stand up to chief executives
Walker dodges pitfalls on bank pay and governance
Banks 'should disclose number of workers earning 1m'
THE INTERVIEW: Walker lays down the law for bankers