Britain’s banking industry needs “fundamental reforms” in its governance, John Nelson, chairman of Lloyd’s of London, wrote in the Financial Times.
“The single most effective way to change the culture of any organization is to change people to those who ‘get’ the necessity of cultural change,” Nelson wrote, adding that “too many of the banking top brass have shown an appetite to cling on to the old days.”
Straitened times call for a model in which “we tie performance to longer-term incentives and sustainable profits,” while the principle of capitalism is undermined by “the mega remuneration endemic in the banks,” the insurance market’s chairman wrote.
“The City shouldn’t be offering any ‘get-rich-quick schemes’ to the bright young men and women who leave our top universities looking for a pot of gold,” he wrote.
“Banks need to refocus on the customer” in an industry that is vital to the economy, providing the essential function of “intermediation of capital and risk,” he wrote.