The Times: Matthew has written today about the threat of prison to deter reckless behaviour by senior bankers

An extract of Matthew's article is below and the full article can be read here. (Only available to Times Online subscribers). Matthew is also speaking about executive pay at the Policy Exchange think-tank on Thursday.

"Like most people, I have no problem with rich rewards for someone who creates a great new product that improves people’s lives. I grew up in a small family business, where reward was tied directly to effort. The idea of a big payoff when things go wrong or a bonus when the company isn’t doing well is anathema to real business people the world over.

To balance the huge rewards for success, the penalties for irresponsible behaviour at such banks must be strengthened. The Government has already announced action to make shareholders’ votes over pay binding and to tackle cosy remuneration committees. In addition I want to see a law which makes it possible to prosecute top executives for serious financial recklessness.

Will the threat of prison make it harder to fill top jobs? I doubt it. Anyone who expects to be irresponsible at the helm of one of our big banks shouldn’t get the job anyway. And this “exodus of the best talent” myth is an insult to those professions in which incompetence already leads to prosecution. I know of no one who was put off medicine by the threat of imprisonment for medical malpractice. Did Michelin-starred chefs abandon their restaurants after the passage of hygiene standards laws?"