On the money ?
Barclays is reportedly reviewing its compensation programme to make sure that bonus and 'allowance' payments comply with increasingly strict European Union regulations.
City AM reports that the EU’s bonus cap, intended to discourage bankers from taking excessive risks, limits annual bonuses to 100% of an employee’s salary, or 200% with shareholders’ approval.
To circumvent the new regulations, multiple British banks, including Barclays, have introduced so-called allowances, or fixed annual payments tied to employee’s roles within the company.
Until now, the allowances have not been seen as 'bonuses' under the EU rules.
The Sunday Times earlier reported the story.
To access the complete City AM article hit the link below:
Barclays reportedly reviewing allowance practices in light of EU banker bonus cap
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