EU officials have announced an agreement that would restrict the amount bankers can receive as as bonus.
EU officials have announced an agreement that would restrict the amount bankers can receive as as bonus. - 
Listen To The Story
Marketplace

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.

“I think the best compliment I can give is not to say how much your programs have taught me (a ton), but how much Marketplace has motivated me to go out and teach myself.” – Michael in Arlington, VA

As a nonprofit news organization, what matters to us is the same thing that matters to you: being a source for trustworthy, independent news that makes people smarter about business and the economy. So if Marketplace has helped you understand the economy better, make more informed financial decisions or just encouraged you to think differently, we’re asking you to give a little something back.

Become a Marketplace Investor today – in whatever amount is right for you – and keep public service journalism strong. We’re grateful for your support.