MEPs plot new attack on City with plans to curb bonuses

EUROPEAN MPs have stepped up efforts to cut bank bonuses by proposing the awards are capped at twice the level of workers’ basic pay.

Yesterday they called for new limits on bonuses and clawback provisions on “golden hellos” to be included in the Basel III rules, which are due to come into force next year.

Othmar Karas, an Austrian MEP steering the measure through the European Parliament, said “variable pay should not be more than double the fixed”.

Belgian Green Philippe Lamberts went further and said the variable element should not be greater than the fixed salary.

They spoke out after EU commissioner Michel Barnier showed support for a ratio between fixed salaries and bonuses.