March 6 (Bloomberg) -- Gordon Brown will propose a global code on pay for bankers to prevent institutions from rewarding bonuses that encourage risky, short-term strategies, a person familiar with his remarks said.

The U.K. prime minister, who returned yesterday from meeting President Barack Obama in Washington, will set out his ideas in a speech to Labour Party supporters today in Dundee, Scotland, according to person who has seen the text.

The comments are aimed at getting support from the Group of 20 nations for joint action to reshape the banking industry after market turmoil forced governments around the world to provide more than $495 billion in support for institutions. Brown hosts a summit of G-20 leaders in London on April 2.

“We have learned that the risks people take should never be separated from the responsibilities that they must meet,” Brown told Congress in Washington on March 4.

His remarks also amplify criticism of bankers from Labour government ministers, who have put the blame for the credit crisis on executives who pursued quick gains without thinking about the consequences for the rest of the economy.

Treasury officials are consulting lawyers about how to claw back some of the 703,000-pound ($989,000) annual pension awarded to Fred Goodwin, the former chief executive of Royal Bank of Scotland Group Plc who led the bank to the biggest loss in U.K. company history and a 28 billion-pound government bailout.

‘Sober’ Banking

Business Secretary Peter Mandelson yesterday called for a “more sober” banking system and tighter regulation. He also talked about pay restraint for bankers.

“The habits of excessive, unmerited rewards for some at the top do not sit well with the very tough realities we are now working in,” Mandelson told an audience of bank executives in London on March 4. “People will inevitably ask why the ‘bonus culture’ in some parts of the financial services sector appears to have led to behavior that destroyed value.”

Brown has already said he wants Britain’s Financial Services Authority to take pay structures into account, setting higher capital ratios for institutions that give bonuses for quick profits rather than performance over several years.

To contact the reporter on this story: Robert Hutton in London at rhutton1@bloomberg.net.

Last Updated: March 6, 2009 05:29 EST