EU seeks new curbs to cap bank bonuses

The European Banking Authority (EBA) published on the 12 April 2012 the results of the survey on the implementation of CEBS Guidelines on remuneration policies and practices. The survey findings indicated that in most countries the Guidelines came into force on 1 January 2011 and that supervisors have actively assessed remuneration policies requiring, where needed, interventions in the remuneration structures and payouts of the variable component. While considerable progress was reported with respect to the governance of remuneration, some areas of concern remained. Further supervisory guidance was needed in setting up the criteria for identifying risk takers as well as in the application of the proportionality principle and of the risk alignment practices.

The FT reported the findings of the survey focusing, in particular, on the issue on bankers' bonuses and attempts by MEPs in the European Parliament to draw up new caps on bonuses to be included in the EU's bank capital legislative proposals passing through the EU policy making system.

ESO: Background information: UK fights Brussels over bank capital rules http://www.europeansources.info/record/uk-fights-brussels-over-bank-capital-rules/

ESO: Background information: Brussels to ask bankers the €1m question http://www.europeansources.info/record/brussels-to-ask-bankers-the-e1m-question/

EBA: Press Release, 12.4.12: Survey on the implementation of the Guidelines on remuneration policies and practices http://www.eba.europa.eu/News--Communications/Year/2012/Survey-on-the-implementation-of-the-Guidelines-on-.aspx

EUObserver, 13.4.12: MEP calls for end to massive bank bonuses http://euobserver.com/19/115872

BBC News, 13.4.12: Bank bonus clampdown threatened by European Commission http://www.bbc.co.uk/news/business-17701194

EurActiv, 13.4.12: MEPs mull tighter rules on bankers’ bonuses http://www.euractiv.com/euro-finance/meps-mull-tighter-rules-bankers-bonus-news-512127

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