BANKS TOLD TO DISCLOSE £1M EARNERS

Sir David Walker said banks and other financial institutions should publish the number of staff paid more than £1 million - but individuals will be able to keep their anonymity.

In his final report, Sir David called on banks to disclose details on the total pay - including salary, pension and both received and deferred bonuses - of employees outside the boardroom for the first time.

Potentially hundreds of top earners will be bracketed in bands of £1 million to £2.5 million, £2.5 million to £5 million and in bands of £5 million thereafter.

Sir David - who also called again for a crackdown on risk-fuelled bonuses - said the report had not been softened since the interim recommendations were made in July, and "if anything it is a bit hardened."

He stressed that while remuneration was one factor in managing risk, boardroom clout, strong leadership and greater shareholder involvement were key to improving corporate governance.

"Remuneration of course is important but I am not persuaded that misallocation of incentives was anything like as serious as the failure of boardrooms to challenge the sort of chief executive that thought they could walk on water," he said.

The report was commissioned by Chancellor Alistair Darling in February this year amid concerns that unrestrained and short-term pay awards were directly linked to the excessive risk-taking at banks in the lead up to the financial crisis.

Sir David has already said that he wants boards to be peopled by strong, highly qualified individuals, able to stand their ground against bullying bosses.

"Taken together, these if implemented would create a regime that is as tough if not tougher than currently in any other jurisdiction in the world," he said.