EUROPEAN politicians voted in favour of a imposing the first ever legal cap on bank bonuses clearing the way for the introduction of the toughest pay rules in the world.
MEPs representing the 27 members approved the proposals which have been criticised as “lunacy” in Britain. The vote, which was part of a broader package of bank rules on capital requirements and transparency which has spent many months being negotiated, was finally passed by a big majority of MEPs.
From January 2014 banks are likely to be banned for awarding bonuses bigger than salaries. Under the rules, a cap of 200pc of salary may be awarded if shareholders agree.
Jose Manuel Barroso, president of the European Commission, said the new capital requirements would enable banks to “absorb future shocks themselves, without asking the taxpayer for help”. He said the pay restriction would “put an end to the culture of excessive bonuses, which encouraged risk-taking for short-term gains." Full story...
Related posts:
MEPs representing the 27 members approved the proposals which have been criticised as “lunacy” in Britain. The vote, which was part of a broader package of bank rules on capital requirements and transparency which has spent many months being negotiated, was finally passed by a big majority of MEPs.
From January 2014 banks are likely to be banned for awarding bonuses bigger than salaries. Under the rules, a cap of 200pc of salary may be awarded if shareholders agree.
Jose Manuel Barroso, president of the European Commission, said the new capital requirements would enable banks to “absorb future shocks themselves, without asking the taxpayer for help”. He said the pay restriction would “put an end to the culture of excessive bonuses, which encouraged risk-taking for short-term gains." Full story...
Related posts:
- After Swiss vote, German politicians call for fat cat cap...
- This cap on bankers’ bonuses is like a dead cat – pure distraction...
- Inflated salaries: Merkel joins battle against fat cat pay...
- Why rich Switzerland is furious about rich executive pay-outs...
- Barclays announces £38.5m bonuses on budget day...
No comments:
Post a Comment