MEPs approve strict bonus limits for bankers
Tuesday 16 April 2013
Strict limits on the size of bank bonuses should be in force next year after final approval of bonus caps by MEPs.
The European Parliament endorsed bonus restrictions as part of a wider scheme forcing banks to increase liquidity and set aside more money to give extra help to small businesses – delivering the toughest EU banking rules so far in a "banking union" governing 8,200 banks in 27 countries.
UK opposition failed to stop a deal between EU governments last month to cap bonuses at a maximum of twice their annual salaries. With the law in force only from the start of next year, however, it will not apply to 2013 bonuses.
Chancellor George Osborne had warned the move would drive banking business away from the EU and, crucially for the UK, away from the City of London as the EU's leading financial capital. Critics have also warned it will just encourage banks to boost salary rates to compensate for curbing bonuses.
But the Liberal Democrat MEP Sharon Bowles, who steered the deal through the European Parliament, insisted a bonus cap was needed across the European banking sector.
"Realignment of the pay/bonus ratio to reasonable proportions reduces perverse incentives to risky behaviour even if total pay stays the same," she said.
- 2 David De Gea: Manchester United goalkeeper's £29m move to Real Madrid off - because paperwork 'not done in time'
- 3 Pansexual: What is it - and when did the term gain popularity?
- 4 A Chinese journalist has appeared on state television 'confessing' to causing the stock market chaos
Miley Cyrus calls out hypocrisy of women’s nipples being taboo
The man who sold Minecraft to Microsoft for £2.5 billion says it's made him miserable
Nazi 'gold train': Fire engulfs suspected location of vehicle in Poland
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Isis releases graphic video showing four Shia 'spies' being burned alive in Anbar, Iraq
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
UN investigating British Government over human rights abuses caused by IDS welfare reforms
£20000 - £30000 per annum: Recruitment Genius: This award-winning company, whi...
£40000 - £50000 per annum: Recruitment Genius: This is a unique & exciting opp...
£35000 - £45000 per annum: Recruitment Genius: You will be working with a 8 st...
£8000 - £12000 per annum: Recruitment Genius: A unique opportunity has arisen ...