In principle, I understand the wishing of the UK government to overcome “the bonus crisis”. At the same time I think that a sharp fixing the free tax amount of bonuses at £25,000 will not be understood by the most bankers. It will be a new escalation of the resistance between government and bankers in the UK.

The Report concerns the wisdom “stay with money (profit) else share it between the executives (employees) and society”. I do not think that this solve the problem because we lose the control over the employee and executive motivation to work effectively. We need to put a focus on the most appropriate STRUCTURE of the executive (employee) remuneration, but not on the certain amount (£25,000). This amount is about 5-6 percent of the fixed salary of bank executives. So, the UK government wants to introduce an new system of executive remuneration, where fixed salary will take more than 90 per cent. I do not think that it will work. Many professional bankers will leave the UK.

I would welcome the proposal to set a free tax amount of bonuses up to 25 percent of the fixed salary. In this case, you will have a personal approach to each bank and its executive. Besides that, I think that 25 per cent will motivate the executives to work hard (£25,000 will not).

With the best regards,
Alex