London - banks devise way to get around bonus rules

Merry Go Round

A battle over banker bonuses is building in London.

The New York Times reports that since the 2008 crisis, regulators around the world have tried to rein in bonuses, worried that big payouts encourage excessive risk-taking by bankers and traders.

The European Union has gone further than most, limiting bankers to bonuses equal to one or two times their salaries.

But the bank giants operating in London - including Goldman Sachs, Bank of America Merrill Lynch and Barclays - are seeking to outflank the new restrictions. Responding to the law, they are structuring new pay packages that try to satisfy both their emboldened regulators and their very expensive employees.

So goodbye, big bonus.

Hello, role-based pay.

Hit the link below to access the complete New York Times article:

Banks in London Devise Way Around Europe’s Bonus Rules


image: © ell brown

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