Bank bonus cap rule edges closer

MEPs yesterday issued a draft proposal to cap bankers’ bonuses. They want to ban banks from paying bonuses of more than an employee’s basic salary and if a supermajority of shareholders disagree, that cap can be raised to two-times the salary. The measure will be voted on in the New Year, before passing to the European Council. However Linklaters’ lawyers suggested banks could get round the cap by paying shares rather than cash.