Will it impact you ?
Bloomberg reports that about 35,000 employees at banks around the world may be caught by European Union bonus caps, more than 20 times the current number of people affected by the pay rules, the British Bankers’ Association said.
The workers facing the EU rules, which would cap bonuses at twice annual pay, include 23,450 bankers in the U.K., 2,835 in other EU countries and 8,777 around the world, the industry group said in a report posted on the European Banking Authority’s website. The BBA asked the regulator to delay the introduction of tougher bonus rules for one year.
Banker pay has been targeted by regulators and lawmakers since the 2008 financial crisis, with the EU adopting the two-to-one cap on bonuses earlier this year. The EBA, set up in 2011 to harmonize banking rules across the EU, defined anyone earning more than $659,000 (500,000-euro) as a “risk-taker,” making them subject to the pay cap.
'Identifying material risk takers solely on the basis of their remuneration package is plainly wrong', Simon Hills, the BBA’s executive director, said in a telephone interview in London.
'Many people paid more than the 500,000-euro hurdle perform roles that don’t result in their taking material risk for their institution and we hope that the EBA will think again on this aspect of its approach'.
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