Call to pay bank bonuses in debt
Banks should pay bonuses in debt, which would be wiped out if a bank failed, an EU banking report will suggest as Europe attempts to step up the fight against bankers’ pay. The Liikanen commission, an independent review set up almost a year ago by EU commissioner Michel Barnier, will tomorrow recommend reforms for long-term pay incentives as well as advocating ringfencing trading activities to make big banks safer. Some of the panel’s most radical measures have been toned down.
AmEx agrees $113m settlement
American Express has agreed to pay about $113m to settle US government accusations that it violated numerous consumer protection laws “at every stage of the consumer experience”.
Munich Re chief makes China plea
Nikolaus von Bomhard, chief executive of German insurer Munich Re, has called on China to create a public-private partnership that would improve protection against earthquakes for businesses and people in the world’s most populous nation.
Putin ally takes charge at Rusal
Rusal, the world’s biggest aluminium producer, has replaced its chairman with Matthias Warnig, an oil and gas expert with close ties to the Kremlin.
Rivals told to raise bids for bookie
William Hill and GVC Holdings are under pressure to raise the stakes in their pursuit of Sportingbet after the online bookmaker rejected their joint 52½p-a-share offer. Sportingbet said that the indicative offer, “significantly undervalues the business.”
The Daily Telegraph
Schools threaten university boycott
Public schools should boycott universities that discriminate against their pupils in favour of state-educated applicants, leading head teachers said.
Vijay Mallya’s air firm is grounded
Debt-laden Kingfisher Airlines has been grounded after its staff, who have not been paid for weeks, said they would no longer work. The carrier said it was cancelling several flights yesterday, but regulators told Reuters all flights had been grounded.
THE WALL STREET JOURNAL
More restructuring ahead for Visteon
Visteon chief Tim Leuliette intends to dump underperforming businesses, consider job cuts and elevate the company’s Asian operations to reinvigorate the car parts firm.
Hedge fund takes aim at Agrium
Activist investor Barry Rosenstein of Jana Partners sought to ratchet up the pressure on Agrium, taking the stage at an investor conference to urge executives at the Canadian fertiliser company to spin off its retail-distribution business and cut costs.