After the G20 meeting in Pittsburgh in September, where standards were implemented on banking pay as a result of the excessive compensations in the financial sector, France said they are not satisfied about the lack of motivation some countries have regarding the need to curb bonuses. Sarkozy will discuss the issue at the follow-up G20 meeting.
The French want to apply the G20 standards before the 2009 bonuses are paid around February and March 2010. Concerns over bonuses have risen again after the news that eight U.S. Banks - which all received support from the government - have set aside around $117.6 billion for 2009 to pay their employees.
All countries must have the same rules about bankers’ pay because otherwise countries with a less strict regulation will have an competitive advantage when attracting executives. The G20 has therefore agreed to stop guaranteed bonuses and will work on its progress to apply all the standards before the bonus season.
Bernard Matthys
Cnbc
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