Bankers who earn more than $1.4m won the chance of a reprieve from European Union bonus curbs as regulators published a blueprint to implement rules on rewards for irresponsible risk-taking.
While the restrictions will automatically hit senior managers and employees able to take significant investment decisions, the European Commission offered the possibility of exemptions for others.
'These standards will provide clarity on who new EU rules on bonuses actually apply to, which is key to preventing circumvention', Michel Barnier, the EU’s financial-services chief, said in an e-mailed statement.
The EU agreed on rules last year that would restrict bonuses, a move lawmakers said would prevent excessive payouts for the gambling behavior blamed for triggering the 2008 financial crisis. The U.K. government challenged the caps at the EU’s highest court in September, saying they were illegal.
The rules took effect on January 1st, meaning that the limits will apply for the first time to bonuses awarded in 2015 based on 2014 performance.
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