THE government will today announce plans to implement in full the recommendations of the Walker review, paving the way for a massive shake-up of corporate governance and much greater openness over pay at the City&rsquo;s largest financial institutions. <br /><br />From 2010 onwards, FTSE-100 banks and comparable financial institutions such as large building societies will be forced to disclose the number of high earners on their payroll. <br /><br />The affected companies will be expected to publish the number of high-rollers in bands, ranging from total annual remuneration of between &pound;1m and &pound;2.5m, &pound;2.5m and &pound;5m, and then in &pound;5m bands thereafter. Sir David Walker abandoned an earlier recommendation to name the top 20 earners at these companies. <br /><br />And at least half of these employees&rsquo; annual variable remuneration should be deferred and paid in the form of a long-term incentive scheme, Walker will say when he publishes his report today. Half of the scheme should only vest after a minimum period of three years, with the remaining half being paid out after five years. <br /><br />Short-term bonuses will be awarded over a three year period, with no more than a third being paid out in the first year, while clawbacks will be introduced to force employees to return pay in the case of misconduct.&nbsp; <br /><br />There will be much tougher rules on corporate governance at big British banks and financial institutions. Chairmen &ndash; who will be forced to prove that they spend two thirds of their working week at the firms &ndash; will be put up for annual re-election.<br /><br />Chancellor Alistair Darling said: &ldquo;One of the fundamental causes of the financial crisis was bad management of some our major banks. Banks failed because some of the top people running banks failed to do their jobs.<br /><br />&ldquo;Sir David&rsquo;s proposals are the blueprint for how banks must be run. The government strongly supports his recommendations and will take steps to implement them as soon as possible.&rdquo;<br /><br />Meanwhile the FSA will today announce the appointment of a handful of City grandees that will help it vet new directors at large financial institutions. Baroness Hogg, the chair of 3i, is expected to be recruited, as are Sir Dominic Cadbury and Sir Brian Pitman. <br /><br />The ABI welcomed Walker&rsquo;s recommendations, but said it was &ldquo;concerned about over-prescriptions and the danger that the UK may move too far ahead of international practice&rdquo;.<br /><br />Similarly, PwC partner Jon Terry said: &ldquo;Particular care needs to be taken so that overly-prescriptive requirements do not put UK institutions at a competitive disadvantage.&rdquo;