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EU strikes deal to cap banker bonuses

Published on Feb 28, 2013 8:16 AM
 

BRUSSELS (REUTERS) - Bankers in Europe face a cap on bonuses as early as next year, following agreement in Brussels on Thursday to introduce strict new curbs, in a move politicians hope will address public anger at financial sector greed.

The agreement, announced by diplomats and officials after late-night talks between EU country representatives and the bloc's parliament, mean bankers face an automatic cap on bonus payouts at the level of their salary.

If a majority of a bank's shareholders vote in favour, that ceiling can be raised to two-times pay.

"For the first time in the history of EU financial market regulation, we will cap bankers' bonuses," said Othmar Karas, the Austrian lawmaker who helped negotiate a deal.

 
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