On Tuesday, April 16, an overwhelming majority of MEPs approved, by 595 votes to 40, with 76 abstentions, the new regulations capping bankers’ bonuses. The new rules must be formally approved by the Council of Ministers to apply. Starting in 2015, this variable pay element will no longer be allowed to exceed fixed earnings. Emboldened by this success, the Parliament is also hoping to get the EU to limit fund managers’ bonuses as well. (Ref. 130260)
Banks. It’s a victory for the European Parliament which, within the framework of the Bale III regulations for the financial sector, has been lobbying the Member States to cap bankers’ bonuses, perceived as incentives to take short-term financial risks. In early March, the Parliament and Council of European Ministers reached an agreement on the subject (see article No. 130144). Because of reluctance from UK MEPs, who want to maintain the competitiveness of the City (the largest financial...
Do you have information to share with us?