Overall compensation packages for bankers could face strict regulation if an international body gets its way.
The Financial Stability Board (FSB), a body of regulators and central bankers, will submit its proposals to the leaders of G20 nations when they meet in Pittsburgh next week.†
The FSB's proposals include specific implementation guidelines on the governance, structure and disclosure of compensation. This will include limits on the levels of reward in line with the need for employers to conserve capital and ensure that the structure and incentives are aligned with good risk management.