ABI 'would oppose vote on bank bonuses'

A move to give shareholders a formal vote on the size of bank bonus pools would face resistance from the Association of British Insurers (ABI).

This is according to Sky News, which reported that the City's most influential shareholder group believes the measure would place too much emphasis on investors to regulate the structure of remuneration at large financial institutions.

Bank executives are believed to have suggested the vote to ministers as a potential way of defusing the anticipated controversy over large bonus payouts in the new year.

"Presently we don't feel that shareholders have sufficient information or resources to make such decisions," the ABI said in a statement.

Shareholders already have the option to vote on remuneration reports in an advisory capacity, but only the pay details of board-level executives are currently disclosed.

Payouts are expected to be lower in the forthcoming bonus round due to a decline in investment banking revenues this year.

Despite this, ministers have called for banks to show restraint with their remuneration in light of public spending cuts and widespread unemployment.