British banks warned on top pay, bonuses

LONDON, Feb. 5 (UPI) -- Lawmakers in Britain are calling on bailed-out banks to show restraint in executive pay and bonuses or risk limits like those imposed in the United States.

"If they have given carte blanche to bonuses, that will fuel public anger," John McFall, chairman of the Parliament's Treasury Committee, told the BBC. "If there are big bonuses, there'll be a huge outcry."

The British government has taken a majority stake in the Royal Bank of Scotland Group PLC. As part of the deal, the bank promised to lend more money and pay no bonuses to board members, but the issue of payments to other executives and traders is still open.

Thursday, Prime Minister Gordon Brown said there would be no further limits on compensation for the time being.

"We have already taken action to ensure that there are no rewards for failure," Brown said at a press conference in London. "There are no cash bonuses being paid in these banks to the top executives."

The Times of London reported Thursday that RBS was planning to spend tens, perhaps hundreds, of millions of dollars on bonuses for thousands of its traders and non-board level executives.