Banks must change sales incentives, says incoming Barclays chairman

Banks must curb their focus on incentives and open themselves up to more scrutiny, the incoming Barclays chairman said this morning.

Speaking to MPs this morning as a witness in an inquiry into banking standards, sir David Walker said banks should be forced to disclose how many staff earn a salary of more than £1m a year.

Walker, who takes over as Barclays chairman in November, said banks need to move away from a system that rewards staff for sales commissions.

The Parliamentary Commission on Banking Standards inquiry was launched after the government came under pressure to scrutinise banks more closely. It is expected to call bosses from all top banks as well as regulators, consumer and other interest groups, and make legislative proposals by 18 December.