Bonus caps are dead! Long live bonus caps! If you think the bonus capping agenda will now be off the table at Pittsburgh, you may be disappointed.

Despite claims that caps have been rejected out of hand, both the communiqué issued by the G20, and comments by officials, suggest this isn’t the case.

The all-important paragraph of the declaration vaguely states that more needs to be done on delivering -

…global standards on pay structure, including on deferral, effective clawback, the
relationship between fixed and variable remuneration, and guaranteed bonuses, to ensure
compensation practices are aligned with long-term value creation and financial stability. [our emphasis]

- suggesting some form of capping may still be on the table.

The Times appears to think so, stating that, ‘Officials said caps on individuals’ bonuses had been rejected but that the Financial Stability Board would examine whether caps on institutions could be introduced, in line with French demands.’

George Osborne appears to have come out in favour of bonus caps. And the French are apparently willing to suffocate their banking industry beneath caps, even if no one else does.

The G20 may also have embraced the Walker Report’s populist proposal that the names of anyone earning more than a bank’s board should be made publicly available.

The Mail on Sunday quoted Alistair Darling as saying, ‘Under what we have agreed today we will be able to see in each firm who is getting these bonuses, whether they are at the top or the bottom of the organisation.’