A non-governmental majority, including the government’s normally loyal parliamentary support party the Danish People’s Party, are rejecting cabinet proposals to curb banker salaries as not good enough.

“The government is generally too soft on the banks. That was the case when Lene Espersen (Cons) was minister (Ed: for business and trade) and it looks like it’s the same under Brian Mikkelsen (Cons),” says Danish People’s Party Finance Spokesman Kristian Thulesen Dahl.

Postponed indefinitely
The Danish People’s Party is demanding that among other curbs, a ceiling of 30 percent should be placed on the variable income of a bank director’s salary – for example in bonus payments. The Social Democrats are calling for a ceiling of 20 percent.

“This must be a requirement for banks and not just guidelines. Here, we are a long way from the government,” Thulesen Dahl says.

Options
The Socialist People’s, Social Democratic and Danish People’s parties are also calling for a ban on stock options for bank directors.

The government has suggested a 50 percent ceiling and ‘recommends’ that financial institutions should follow proposals on best practice and a wages and salaries codex to be determined by the institutions themselves. Finally, the Danish Financial Supervisory Authority should monitor whether payment policies are in keeping with long-term goals.

Dragging the government
“The government is rather reticent on the issue. It seems that it doesn’t really want to tighten bank regulation. They have to be dragged to the trough and forced to take it seriously,” Thulesen Dahl says.

But the governing Liberal Party is not prepared to curb stock options.

“These are there to ensure that employees have an interest in the sensible running of their businesses,” says Liberal Business Spokesman Torsten Schack Pedersen, who believs the government will eventually reach an agreement.