MEPs likely to back bank bonus cap
A likely vote by European Union lawmakers on Monday [14 May 2012] to back curbs on bankers' bonuses will add to pressure on member countries to follow suit, says Reuters.
"There is enough cross-party support for this to go through," a parliamentary official involved in negotiations on the vote told Reuters on Friday [11 May 2012].
Reuters reports: "The EU has already implemented and toughened up new global rules that a large chunk of a bonus must be paid over several years in the form of shares and can be clawed back if the performance which triggered the award turns out to have been poor. EU lawmakers are now looking to cap the bonus, although a push by some lawmakers to limit top salaries at a bank to 40 times the lowest pay packet is not expected to win enough support. Member countries have yet to discuss the issue."
Update on the Regulation of Pay in Financial Services
Pay in the financial services sector continues to provide ample material for the media, with high-profile bank executives seemingly queuing up to waive their bonuses, whether out of a sense of honour or necessity. Generally bankers’ bonuses, af...