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EU states back bonus cap in bank rules - EU official
February 14, 2013 / 5:46 PM / 5 years ago

EU states back bonus cap in bank rules - EU official

LONDON (Reuters) - European Union states backed plans to cap bankers’ bonuses in the bloc’s new rules on bank capital, an EU official said.

Ambassadors from the 27 member states meeting on Thursday backed capping bonuses to no more than fixed salary, a so-called 1:1 ratio.

The bonus could be doubled if backed by a simple majority of shareholders at a meeting where two-thirds of shares are represented, a tough hurdle.

The move was proposed by the EU’s Irish presidency in preparation for a meeting with the European Parliament next Tuesday to negotiate a final deal on the EU capital requirements law.

“There was broad consensus in favour of the Irish presidency’s approach, with the notable exception of Britain,” the official said.

Britain had suggested that the 1:1 ratio could be between fixed pay and cash, with the possibility for shareholders to adjust this by a simple majority of votes cast in a meeting.

Reporting by Huw Jones, editing by Sinead Cruise

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