General conclusions of report
"This report has thrown down the gauntlet to all financial sector organisations. Times have changed and it would be wrong to assume they can sit on their hands and wait for the 'good times' to return. They must look at the performance, values, attitudes and behaviour the organisation needs from its top talent, and how it will reward and recognise this.
"It's all about rewarding sustained value creation. Is the size of the reward in line with the success of the company? Should the reward be deferred over an appropriate number of years, or awarded in shares, or both?
"But we believe the Committee has missed a trick by focusing too much on the reward aspect of people management. It is dangerous to overplay the role of bonuses in contributing to the banking crisis and the impact that their reform will have.
"There must be a more holistic approach to how people are managed and rewarded, including good management and appraisal systems and organisational culture with an appropriate attitude to risk.
Conclusion that FSA should not regulate the size of pay in the banking sector
"The CIPD supports this conclusion and has previously stated the FSA should not regulate pay or how much people are rewarded.
Proposal that financial companies disclose salaries and remuneration procedures for staff below the board where they are paid more than board members
"The CIPD welcomes this suggestion. Top talent is crucial to the success of organisations, and giving shareholders sufficient information on how these key individuals are rewarded and what performance levels are required is important for their investment decisions.
Proposal that remuneration committee members have greater expertise
"We support calls for remuneration committee members to have greater expertise as well as increased transparency and independence of mind. However it is important that demands on them do not become so onerous that the available pool of talent diminishes even further."
Liberal Democrat Shadow Chancellor, Vince Cable, who doesn't share the CIPD view about bonuses said: "It is clear that there was widespread failure in management throughout the banking system.
"Many senior executives acted deeply irresponsibly with little scrutiny or oversight.
"A reckless bonus culture led to major banks putting short term reward ahead of long term stability, which in turn contributed to the financial crisis.
"There must be a radical change in both the culture and regulation of the banking system. Never again should greed be allowed to bring down economies."
