Pension funds body NAPF calls for bonus restraint

The National Association of Pension Funds (NAPF) will today launch a new governance code, urging pension funds and other institutional investors to promote better standards.

The NAPF will recommend that institutional investors engage more closely with boards in order to keep a tighter rein on the bonus culture in the financial services sector.

City Minister Lord Myners will use his speech at the launch event to renew his attack on institutional investors, telling them that excessive bonuses in the financial services sector are hitting British pensions.

He will tell his audience that financial services businesses have had to cut dividends in order to pay bonuses.

According to the Times, Myners will also tell attendees that companies should be run for the benefit of their owners, not for their highly paid employees.