MEPs likely to back bank bonus cap

FINANCIAL SERVICES

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.

According to Reuters, a proposal to cap bonuses at the same level as a banker's fixed salary is expected to be endorsed by the European Parliament's Economic and Monetary Affairs Committee.

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"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."