Banks turn to legal action against EU bonus cap

As political efforts to defeat the EU bonus cap have seemed ineffective (and sadly attacking the cap would likely be politically damaging for any who tried), banks are turning to the law. Last April City A.M. reported that banks might try this. Over at City A.M. Careers:

Law firm Shearman & Sterling have released advice concluding that the regulations could be struck down in court if there is an attempt to impose them. “We believe, on balance, that a mandatory provision fixing the maximum salary-bonus ratio payable in the banking sector not only contravenes European law because the EU lacks the requisite competence to legislate on issues relating to pay, but may also violate the constitutions of certain member states, such as Austria, Germany and Poland.”

(Full article)