In general, private sector remuneration arrangements are a matter for employers, employees and shareholders to agree. However the Government do have a role to play in preventing undesirable practices, such as remuneration policies in the banking sector which encourage excessive risk taking.
On 19 November the Government introduced the Financial Services Bill to Parliament. The Bill contains measures to implement both the G20 agreement on remuneration in the financial services sector and Sir David Walker's proposals to improve corporate governance. The measures in the Bill will help to ensure that remuneration policies do not contribute to excessive risk taking.