European Union approves new rule to limit bonus packages
BONUSES for bankers in the European Union must not top basic salaries, a panel of EU lawmakers agreed yesterday, putting pressure on member states to back some of the world’s toughest curbs on high pay packages.
The European Parliament’s economic affairs committee approved the bonus cap as part of a draft law intended to force banks to hold more capital so they can withstand shocks better without needing taxpayer help again.
A slew of major banks have already faced investor backlashes against high pay for retail and investment bankers.
The committee also backed gender quotas for boards of banks.
The draft law turns the Basel III global accord on bank capital into EU law, but will need approval from member states to become effective.