COR – The EU will impose limits on bonuses for bankers in 2011
Wednesday, June 30th, 2010From early 2011, the European bankers will no longer affect more than one third of their bonus in cash and the payment of 40% of the total variable pay will be deferred over time, according to an agreement reached Wednesday between MEPs and member states .
Moreover, bank managers who have not repaid the state aid paid to the height of the financial crisis will not be eligible for variable pay and their salaries can not exceed a certain limit.
Finally, extraordinary payments related to retirement are covered by these rules.
"Parliament has managed to get 70% bonus is linked to the results when states were content to pay portmanteau words as 'balanced' or variable part" reasonable ", welcomed the French MEP Canfin Pascal, who was negotiating the text for the Greens.
Technically, according to the agreement, 30% of earnings will be pocketed immediately, 30% will be paid in shares not immediately salable and the remaining 40% will be paid later, half in cash and half in financial instruments linked to the performance of long After the bank.
The directive, known CRD3 (Capital Requirements Directive), also increases the capital requirements for operations re-securitization, which will affect the activity of investment banks.
The new rules should be in force early next year to cover bonuses and variable compensation paid in January 2011.