EU in new attempt to police banker pay

No Pot Of Gold

The EU is after you!

Bloomberg News reports that banks in the European Union face rules on how they can use contingent convertible bonds in bonus awards, as regulators seek to avoid any attempts by lenders to escape the full force of EU pay curbs.

The European Banking Authority published draft rules that would prevent banks from offering staff dividends on contingent convertibles, or CoCos, that are out of step with those available to outside investors, the agency said in an e-mailed statement Monday. The measures would also require holders of the securities to face a real risk of losses if the bank’s performance plunges.

Securities issued as part of bonus awards 'should take account of the institutions’ long-term interests and incentivize prudent risk-taking of staff', the EBA said. 'In this respect, these instruments must have a sufficient maturity to cater for deferral and retention arrangements'.

Hit the link below to access the complete Bloomberg article:

EU Regulators Seek to Police Use of CoCos in Banker Bonuses

Barclays Said to Lose in Bid to Get More Time for Capital

Moelis, Rothschild Take Lead on Omnicom-Publicis Merger

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts