Support our non-partisan non-profit newsroom 💜 Donate now
BBC World Service

EU looks to cap bankers’ bonuses

Marketplace Contributor Feb 28, 2013
HTML EMBED:
COPY
BBC World Service

EU looks to cap bankers’ bonuses

Marketplace Contributor Feb 28, 2013
HTML EMBED:
COPY

Bankers in Europe could be facing a cap on their bonuses as early as next year. EU officials announced an agreement today that would restrict pay at all banks based in Europe — and any units of European banks based abroad.

 

If passed, bankers’ bonuses may not exceed the amount of their basic salary, but the amount can range higher with shareholder approval. Predictably, reaction from the banking community has been unfavorable.

“It is going to exert at the very least some kind of constraint on what bankers can get paid and they would really rather not have any such restrictions,” says the BBC’s Economics correspondent Andrew Walker.

 

There is a fear that if the bonus cap is made into law, banks may decide to move operations to the United States or other business centers in Asia that do not have such tight restrictions.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.