More London bankers in line for bonus pain as the EU cap gets tighter
Thousands more London bankers are set to be caught by the EU's controversial bonus cap, it emerged yesterday.
The European Banking Authority's board of supervisors has ruled that any employee making more than €500,000 (£420,000) annually should be deemed a "material risk taker". Experts say this means the cap, which limits bonuses to no more than 100 per cent of salary, or twice that with shareholder approval, would apply to them. Barclays, widely seen as most affected by the cap in the UK, had 393 "material risk-takers" in the current year but had 1,338 staff earning more than £500,000.
That potentially quadruples the number of its bankers facing bonus caps, which are set to come in next year. Remuneration experts at PricewaterhouseCoopers said some banks in London could see the number of bankers getting capped rise by a factor of ten.
Jon Terry, a partner at PwC, said: "This expansion of the definition of risk takers will see substantially more individuals working in the banking industry being hit by tougher pay rules, including being subject to bonus caps from next year."
He added: "This will create a major challenge for banks as to how they reward their staff. Bringing more people into the stringent pay rules again further widens the gap between pay practices in Europe and the rest of the world.
"The final rule is likely to be adopted ahead of the 2014-15 remuneration round, meaning companies
- 1 Mother fed her daughter tapeworms to make her skinny for beauty pageant
- 2 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 3 Crystal Palace next manager latest: Palace consider Ally McCoist - EXCLUSIVE
- 4 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 5 Tim Sherwood column: 'It started as a three-horse race but turned into the Grand National'
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£20000 - £27000 per annum: Harrington Starr: Service Desk Analyst- (Desktop Su...
£25000 - £35000 per annum: Harrington Starr: Service Desk Analyst - (Active Di...
£30000 - £50000 per annum: Harrington Starr: Junior Quant Analyst - C++, Boost...
£30000 - £50000 per annum: Harrington Starr: Junior Quant Analyst (Machine Lea...