Sir David Walker, the new chairman of Barclays, called on banks and major firms this week to publish staff salaries over $1.61 million, saying that the institutions should eliminate sales-based pay incentives.
“The problem I think that is most serious is not so much levels of remuneration as the gearing of remuneration to revenue,” Walker said at the first parliamentary hearing related to the recent Libor scandal, Equities.com reports.
Walker recommended in 2009 that banks should publish the number of employees making more than $1.61 million and disclose the salaries in bands that reflect bonuses and pension contributions.
The coalition, however, required only the top five highest paid executives outside of the board of directors to be reported anonymously. In 2010, Barclays disclosures revealed that five of its top bankers were paid a total salary of $177.4 million. The executives included Rich Ricci, the current head of the investment bank, and Jerry del Missier, a former Barclays COO, both of whom earned more than former CEO Bob Diamond, according to Equities.com.
Currently, only the top eight highest employee salaries, excluding board members, are required to be reported, though the individuals may remain anonymous.
“Certainly in the investment banks, the executive board members were commonly paid much less than the traders, which is why I recommended, and I hope we’ll soon have progress on this, that there will be made available to shareholders bands of remuneration of the top 50, 100 or whatever,” Walker said, Businessweek reports.