EU Moves to Cap Bank Bonuses
Posted on Jun 30, 2010
Looks like banking executives in EU member nations will have to settle for slightly less ginormous bonuses in the coming year, once the European Parliament puts its official stamp on an agreement to limit banking bonuses and severance packages. —KA
Under a deal agreed with the European Parliament, bankers will receive no more than 30% of their bonus immediately and in cash, or 20% for larger bonuses.
The remaining bonus payments will be delayed and linked to long-term performance, with 50% paid in shares.
Hedge funds will also be covered by the new rules, the BBC has learned.
AP / Virginia Mayo
European Union Commissioner for Economic and Monetary Affairs Olli Rehn speaking during a media conference at EU headquarters in Brussels on Wednesday.