G20 body warns on bonuses

Banks are failing to comply with global rules requiring them to peg bonuses to long-term company performance, the regulatory task force of the Group of 20 leading economies said yesterday. The G20 approved principles in the aftermath of the 2007-09 financial crisis to stop bonuses from encouraging excessive risk taking. The rules limit how much is paid up front in cash. In a report for a summit of G20 leaders next week, the Financial Stability Board said implementation was improving but some areas needed tightening up, in particular matching bonuses to performance.