European Parliament: Bank bonuses should be capped at 50% of salary
16 June 2010
Bankers' bonuses should be capped at a figure equivalent to half of their annual salary, a European Parliament committee has suggested.
The Economic and Monetary Affairs Committee has also called for bank directors at firms which received bailouts to be paid no more than €500,000 ($616,000) a year until all public money has been refunded by their company.
It also wants to see 40 per cent of any bonus payout deferred for a five-year period.
Sharon Bowles, chair of the committee, told Bloomberg: "If bankers and traders want to leave and go to other jurisdictions, it just shows that they do not have confidence in their own performance.
"To those that would leave I say good riddance."
The proposals set out by the committee will be voted on by the full European Parliament in July.
MEP Arlene McCarthy initially proposed the 50 per cent cap for banking bonuses back in March, while she also suggested that up to 60 per cent of such payouts should be deferred over the course of three years, reported the Financial Times.
By Tony Aynsley