Top Firm CEO Concerned That Bonus Cap Will Impact Retention / Recruitment

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UK Chancellor George Osborne launches a fresh assault on capping bankers' bonuses Tuesday at the first formal negotiations on the plan between Europe's finance ministers.

The London Evening Standard reports that the meeting in Brussels will consider a provisional proposal pushed last week by MEPs and backed by the European Commission. It adds strict limits on salaries to a wider scheme forcing banks to increase liquidity and set aside more money to give extra help to small business.

British officials have protested that the cap on bonuses - a maximum of a year's salary or double that if explicitly approved by shareholders - was never part of the terms of the 'Capital Requirements Directive' being negotiated.

In the meantime, Reuters reports that on the subject of the bonus cap, Standard Chartered Chief Executive Peter Sands said: 'We are concerned about it because we are a global bank and 97% of our staff are outside the EU and we're concerned about our ability to be competitive in attracting and retaining talent'.

Asked if it could prompt the bank to leave London, he said it was 'too early to draw conclusions on what action we would take as we don't know what we are dealing with'.

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