The Telegraph reports that the chairman of Europe's biggest bank has attacked the 'retrograde' bonus cap enforced by the European Union and said that continuing restrictions on banker pay are making it difficult to compete with other industries.
HSBC's Douglas Flint said restrictions on variable pay, which have pushed up salaries at banks, threatened to reverse the work done to make bankers more accountable for their actions, such as rules on clawing back and deferring bonuses.
Speaking to a House of Lords committee, he added that reducing pay would harm the industry and make it difficult to compete with other lucrative careers. His comments came the day after Sir Jon Cunliffe, a senior policymaker at the Bank of England, said bankers' pay may have to fall to bring it in line with falling industry profits.
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