October 26, 2009

Britain's main opposition Conservative Party said Monday that banks bailed out by the government should be prevented from offering cash bonus payments of more than 2,000 pounds ($3,260).The party's Treasury spokesman George Osborne said the banks should only offer larger bonuses as company shares, a plan which echoes U.S. President Barack Obama's recommendations to limit executive compensation and use a mix of cash and stock payments.

Osborne said that cash earmarked for staff bonuses should instead be used to offer credit to struggling small businesses."This is still a credit crunch, and it would be inexcusable for banks to pay out big bonuses to their staff, when there are so many businesses that need that cash," he told Britain's GMTV television.The Conservative Party led by David Cameron has consistently been far ahead in polls tracking public opinion in advance of a general election that must be held by next June at the latest.