Boris Johnson criticises banker bonus cap

1 March 2013

Boris Johnson has criticised a new deal aimed at capping the amount of money bankers are able to take home through bonus schemes.

The Mayor of London described the arrangement - which has been provisionally agreed by European Union (EU) officials - as self-defeating because it could undermine support for the EU in Britain, while at the same time benefitting rivals to the City of London that are based overseas.

As part of the proposals, a year's salary would be set as the maximum payout, although shareholder approval could lead to this figure rising to the equivalent of two years' wages.

Mr Johnson labelled the agreement deluded, stating: "People will wonder why we stay in the EU if it persists in such transparently self-defeating policies."

The comments come after the Treasury had already expressed its opposition to the development for fear that job losses in the City could come as a consequence, while there are also concerns that firms might abandon the UK for more favourable settings elsewhere.

By Tony Aynsley

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