Finance minister Wouter Bos expects the G20 summit in Pittsburgh this weekend will result in concrete measures to curb bank bonuses, the Financieele Dagblad reports on Friday.
‘We must make speed with reforms more than ever, because soon it won’t happen any more,’Bos told the paper on the eve of the meeting of the world’s 20 most powerful economies. The Netherlands is not a member of G20 but has been invited as an observer by US president Barack Obama.
‘I am hopeful that there will be a ceiling or the abolition of guaranteed bonuses which are not performance related,’ Bos said. ‘And the practice of handing out unlimited bonuses when a bank is not healthy must also have rules.’
According to Irish public broadcaster RTE, the summit will agree that bankers’ bonuses should be curbed and will call for government stimulus measures to be maintained until the global economic recovery is cemented.
Leaders would advise ‘limiting bonuses to a percentage of total net revenues when it is inconsistent with maintenance of a sound capital base,’ a G20 source told RTE, quoting from the draft.
Bos declined to comment on yesterday’s call by Dutch central bank president Nout Wellink for an end to bonuses until the economy recovers.
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