Brussels beats London on maxi-bonuses for managers. The European Parliament, the EU Commission and the European Council have signed a preliminary agreement on the new package of rules for Basel 3 banks. And one of the new rules precisely provides for the prohibition of bonuses exceeding double the fixed salary of senior managers. “We now have all the elements for an agreement”, commented EU Commissioner Michel Barnier.
The bonuses can go up to double the fixed salary (but never beyond) only with the consent of the Bank's shareholders. The new rules, which import the Basel accords into EU legislation, will enter into force on 2014 January 2014 or XNUMX July XNUMX.
The bonus chapter had been the point of major disagreement between countries, as France and Germany wanted to impose caps on benefits to discourage bankers from excessive financial risk-taking, while Britain and major industry players believed that limiting them would only lead to salary increases.
Swiss citizens will express themselves on the same subject on Sunday in a popular initiative referendum. The text provides for the strengthening of the shareholders' power to prevent the payment of excessively high salaries and bonuses. If – as polls indicate – it were to be approved, Switzerland would have the “strictest company law in the world”, according to opponents.
