G20 calls for curbs on bank bonuses

Global standards aim to align compensation in financial sector with long-term stability
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 10/05/2009

With the G20 pushing for curbs on excessive risk-taking activities in the financial sector, if not a full cap on banker bonuses, Canada could see some changes to its guidelines. Banks may be required to defer some executive bonuses for three years, according to Finance Minister Jim Flaherty.

“One of the major things is to spread out bonuses so that bonuses are not paid for short-term profit, which was one of the issues that led to the crisis in the past year,” he said.

The announcement comes despite the fact Canada already has stronger regulations and has suffered much less than others in the financial markets — banks such as RBC did considerably well this year.