UK's Brown pledges tough action on bank bonuses-FT

Published: 31 Aug 2009 16:52:15 PST

LONDON, Aug 31 - British Prime Minister Gordon Brown pledged 'tough action' on excessive remuneration in the financial sector as part of an international effort, The Financial Times reported.

In an interview for its Tuesday edition, the Financial Times reported that Brown said pay and bonuses should be paid on long term results, not speculative gains, and that banks should take back bonuses if performance suffered in subsequent years.

The FT reported that Brown was 'unenthusiastic' about French-led pressure to set a mandatory cap on bankers' bonuses and that the UK would not take action unilaterally.

Brown did not endorse the comments made by Lord Adair Turner, chairman of market watchdog Financial Services Authority, who said the financial services sector was bloated and needed to be cut down to size.