Sarkozy: Bonus against results

New rules affecting French banks to limit traders’ bonuses were disclosed by President Nicolas Sarkozy and he requested the leaders of the richest countries of the G-20 to do the same.
Speaking after meeting with leaders of the largest banks in France, Sarkozy said that the bonuses should now be linked to results.
He is one of the most notorious critics of unlimited international financial market practices that have encouraged excessive risk-taking and contributed to the financial crisis.
Sarkozy said: „Things can not remain the same as before. I took this commitment to the French people and not go back. This is a moral issue that is crucial to ensure financial stability. “
Banks have agreed to the allocation of salaries for several years, which will affect the long-term profits and reduce the risk of making decisions.
They will also provide more information about how to provide bonuses and traders will be charged penalties if the money lost to the detriment of their banks.
The issue is expected to be high on the agenda of finance ministers and leaders of the G-20 in September.
Sarkozy said he wants the G-20 to strengthen international financial regulation plan, including agreed limits for individual bonuses, but would not abandon the new rules, even if other countries do not follow the example of France.

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Euronews
Finance