To ask Her Majesty's Government whether they intend to introduce measures to require banks in receipt of state support to pay bonuses in new shares. [HL5993]

The banks in which the Government have a shareholding are managed on an arm's-length commercial basis by United Kingdom Financial Investments (UKFI). UKFI has been working with government investee banks to ensure that incentives are much more strongly linked to long-term value creation, and is currently negotiating with the banks in respect of their 2009 performance year remuneration. The Government expect their investee banks to be at the forefront of implementing the FSA's code of practice on remuneration and the G20 agreement on remuneration.