The world’s finance ministers, meeting in London at the weekend, zeroed in on bonuses as the symbol of financial sector excess. They may be a convenient target, but we are in danger of some very bad law-making.

Bonuses are a good thing: they are an instrument of alignment. They are the right way to align the interests of employee and employer, employer and shareholder, customer and service provider – and, yes, to curb excess by bankers.