G20 closes in on bonus deal

THE WORLD&rsquo;S financial superpowers are nearing a compromise on bonuses which would satisfy both the US and counterparts in France and Germany, with the G20 summit in Pittsburgh due to begin tomorrow.<br /><br />Mandarins from the G20 powers are thrashing out a co-ordinated solution to the remuneration question, that would see banks required to pay a greater proportion of bonuses in deferred shares, the introduction of a clawback and the abolition of guaranteed pay deals over several years.<br /><br />However, the agreement is expected to shy away from absolute bonus caps for individuals &ndash; an idea initially favoured by France and Germany &ndash; to avoid placing a stumbling block in the way of economic recovery.<br /><br />The US and UK have made it clear that they will not support caps for individuals, but have warmed to a proposal that would see banks made subject to a limit on compensation as a percentage of revenue.<br /><br />Prime Minister Gordon Brown is understood to be behind the proposal, which both the US and the UK see as an acceptable alternative to individual bonus limits.<br />US regulators have already stepped up efforts to find out banks&rsquo; trading positions so they can be sure traders&rsquo; bonuses are based on real profits.