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.
Exclusive: World’s most pristine waters are polluted by US Navy human waste
Missing Malaysia Airlines Flight MH370: Any terrorist seizure of the plane ‘would have required one hell of a piece of planning’
Croatia's second city to close 'worst zoo in the world' after reports of 'nightmare' conditions and 'depressed' animals
Missing Malaysia Airlines Flight MH370: Hijackers, pirates or suicide – the theories surrounding the mystery
Oscar Pistorius trial: Photographs of Paralympian splattered in blood after Reeva Steenkamp shooting shown in court
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
No EU referendum under Labour: Ed Miliband to reveal that vote on membership is ‘unlikely’ in next Parliament if party wins power
Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
The rise of Ukip: Study warns Labour that Eurosceptic party's electoral base now 'more working class than any of the main parties'
Europeans have ‘got whiter’ due to natural selection in past 5,000 years, scientists say
Fracking is turning the US into a bigger oil producer than Saudi Arabia
- 1 Is your name now 'banned' in Saudi Arabia?
- 2 Exclusive: World’s most pristine waters are polluted by US Navy human waste
- 3 Nemanja Matic interview: My family were in tears when we left Lisbon
- 4 Missing Malaysia Airlines Flight MH370: Jet ‘hijacking’ began soon after take-off
- 5 'Missing Malaysia Airlines Flight MH370 plane found in Bermuda Triangle!' Facebook links are profiting hackers
£50000 - £60000 per annum: Charter Selection: This well respected and exciting...
£40000 - £50000 per annum: Charter Selection: This exciting company and market...
£40000 - £60000 per annum + EXCELLENT SALARY: Austen Lloyd: Senior Private Cli...
£25,000 to £35,000: IT Connections Ltd: Signal Processing Engineer / Acoustics...