Banker bonus cap row: Lawyers react to the European Court of Justice bonus cap rebuffal November 20, 2014 The European Court of Justice (ECJ) has rebuffed George Osborne's battle against banker bonus caps – but what do the City's lawyers think of it? To recap, today Niilo Jääskinen, an advocate general at the European Court of Justice's (ECJ), said the bonus caps – which limit bankers' bonuses at 100 per cent of [...]
The European Court of Justice has dealt a blow to George Osborne’s banker bonus cap challenge November 20, 2014 The European court should reject George Osborne's challenge to the EU's cap on banker bonuses, according to one of its senior advisors. Niilo Jääskinen, an advocate general at the European Court of Justice's (ECJ), has said that all the UK’s pleas should be dismissed and that the action should be scrapped. He said that the [...]
Is Mark Carney right that clawback may need to cover all bankers’ pay, not just bonuses? November 17, 2014 Alex Edmans, a finance professor at London Business School and Wharton, says Yes. Pay packages should ensure that executives act in the long-run interest of their firms. Short-run bonuses incentivise bankers to boost near-term earnings at the expense of long-run value – such as writing subprime loans or manipulating rates. Clawbacks will deter myopic actions, [...]
Honey, I‘ve shrunk your bonus November 10, 2014 Bonuses on Wall Street could be down as much as 10 per cent for some professionals this year, according to a closely watched survey by consulting firm Johnson Associates. Overall, the firm expects 2014 bonuses to be flat compared with last year. However, the size of bonuses varies significantly across the industry. Stock and bond [...]