Tougher steps on disclosing bankers' pay proposed

The proposals to be introduced in parliament later on Wednesday are expected to oblige banks to reveal how many staff earn aggregate salaries of at least 500,000 pounds. This would be broken down into 500,000 pound bands up to five million pounds, followed by increments of one million pounds.

The government's Walker review on bankers' pay had previously laid out less demanding proposals but policymakers are mindful, with an election expected on May 6, of sustained public anger over the causes of the global economic crisis.

"This will include proposals for narrower disclosure bands than Walker proposed, starting with salary packages below the 1 million pound floor that he suggested," Myners said in a speech in London.

"We will consult on the idea, but as the Chancellor has said -- most people are convinced that far more disclosure is important, because they will then be able to see precise remuneration practices."

The aggregate totals will include salary, cash bonuses, deferred shares, long-term awards and pensions.

The Labour government, which had to use billions of pounds of taxpayers' money to rescue several large banks during the credit crisis, argues that financial firms encouraged staff to take excessive risks by offering huge rewards.

Signs of a return to this kind of pay behaviour has sparked an angry response from a public which has endured soaring unemployment, a dearth of credit and low salary increases during an 18-month recession which Britain is now emerging from.

Some recent opinion polls have suggested that Labour, in power since 1997, could remain the largest party in parliament after the election, but fall short of an overall majority.

Such an outcome appeared highly unlikely only a few months ago when the opposition Conservatives enjoyed a commanding lead in polls. Analysts say some form of hung parliament, where no one party has control, appears most likely at present.

How best to clean up the banking system has become one of the critical policy battlegrounds ahead of the election.

"From the outset of the crisis, the government has been focussed on eliminating rewards for failure and ensuring that remuneration does not incentivise risk taking," Myners said.

(Editing by Stephen Nisbet)