The European Central Bank (ECB) has cast its eye over bankers' bonuses and share options, saying banks should pay more attention to their capital ratios when they dole out this kind of variable remuneration.
In its relatively new role as the Eurozone's chief bank adviser, the ECB said it would "thoroughly examine" banks' policies regarding bonuses.
"The ECB will take the banks' capital situation into account, as variable remuneration should be consistent with a bank's ability to maintain a sound capital base," it said in a statement today.
Banks who fail to comply with the central bank's recommendation will have to "provide additional information and explain their reasons in detail," it said. It will then be assessed by the ECB, which can take individual decision as part of its Supervisory Review and Evaluation process.
This comes against increased scrutiny over the level of pay received by City bankers. UK chancellor George Osborne has previously hit out at the EU's plan to cap bonuses to 100 per cent of bankers' salaries.