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EC considering banker pay law reforms

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EC considering banker pay law reforms
Michel Barnier - European Commissioner for Internal Market and Services
New rules surrounding bankers' pay could be implemented by the European Commission (EC) in the near future.

That is according to the body's regulatory chief Michel Barnier, who has revealed policymakers are considering introducing a fresh system whereby bonuses are restricted to a fixed ratio of wages.

During an interview with Reuters, Mr Barnier also explained the EC is looking into the possibility of capping senior bankers' pay awards to a multiple of their junior colleagues.

These reforms would represent a significant change to current European Union (EU) law should they be passed but Mr Barnier - who assumed his role at the EC in February 2010 - believes they could be essential to avoid a public backlash on financial pay.

"If banks are incapable of self-discipline with regards to bonuses, then we must act," he told the news source.

The official is now in the process of drafting a proposal for this new law, which will then be considered by member EU states.

By Gary Cooper

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