06/01/2012 04:49 GMT

David Cameron Pledges To Crack Down On 'Out Of Whack' High Pay

David Cameron has promised the government will take steps to curb high pay and excessive bonuses.

In a New Year interview with BBC Radio 4's Today programme the prime minister acknowledged people were "not satisfied" with bonus culture.

"I think, frankly, we've seen a level of reward at the top that just hasn't been commensurate with success. I'm all for people being well-paid if they're succeeding, growing business, you know, we've got to be a competitive country, a competitive economy."

Cameron said that they would make an announcement about how the government can promote more transparency and shareholder restrictions on high pay "later on this week".

"I think the whole bonus culture has got completely out of whack, not just in banks, but in all sorts of businesses and organisations, you use bonuses to incentivise staff."

His promise came after he and his deputy spoke out against tax avoidance on Thursday.

The prime minister acknowledged Britain was in "testing economic times" but retained a sense of optimism "I think we've got to meet these challenges with a sense that we can overcome them."