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.
- 1 Cara Delevigne addresses awkward interview on Good Day Sacramento
- 2 Top Gear team of Jeremy Clarkson, Richard Hammond and James May officially heading to Amazon Prime for new car show
- 3 Stuart Baggs: Apprentice star 'The Brand' found dead aged 27
- 4 How to cancel Amazon Prime: after Top Gear hiring, how to leave premium service
- 5 MH370 debris: Investigators 'confident' that Boeing 777 wing found - live updates
Kate Winslet thanked 'particularly horrible' girl who bullied her at school after Titanic success
Cara Delevigne addresses awkward interview on Good Day Sacramento
Stuart Baggs: Apprentice star 'The Brand' found dead aged 27
MH370: Boeing 777 wing that could match missing plane found on the French island of Reunion
MH370 debris: Investigators 'confident' that Boeing 777 wing found - live updates
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
I am the Jeremy Corbyn supporter that many will tell you doesn't exist
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
Calais crisis: For desperate migrants it is 'England or death' as they brave dogs, riot police and speeding trains
£28000 - £45000 per annum: Recruitment Genius: With extensive experience and a...
£26000 - £34000 per annum: Recruitment Genius: This is an opportunity to join ...
Negotiable: Recruitment Genius: Due to on-going expansion, this leading provid...
£6 - £8 per hour: Recruitment Genius: This is an opportunity to join a family ...