Banks should be forced to disclose the number of employees earning more than £1m, a government sponsored review by city grandee Sir David Walker has concluded.

Sir Walker, the former chairman of Morgan Stanley's international unit, said more than 1,000 workers in the City earn over £1m a year.

'I've not done that survey, we don't know ... but well over 1,000, and maybe many more in the City,' he said in an interview on BBC's Today programme when asked how many bankers earn more than £1m per annum.

Sir Walker also proposes that at least half of a year's variable remuneration should be in the form of a long-term incentive scheme.

Short term bonuses should be paid over a three year period, with no more than one-third paid in the first year. In the event of misconduct, clawback should be used to reclaim pay.

Banks' boardrooms could also face a number of changes, with proposals including the annual re-election of the chairman, better training for non executives and greater shareholder scrutiny.

The government said it will move quickly to implement the reforms 'as soon as possible'.

The Financial Services Secretary Paul Myners will shortly meet with major institutional investors to discuss steps they can take to implement Walker's recommendations as owners of UK banks, according to a Treasury statement.

Chancellor Alistair Darling said Sir Walker's proposals are the 'blueprint for how banks must be run in the future.'

'Tougher regulation, including stronger capital and liquidity requirements, reform of the mortgage market, greater competition, consumer protection, and living wills will help to make our system safer for the future. But the culture of the banks themselves must change,' he added.

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