Tuesday, 5 March 2013

Osborne plans to weaken bankers’ bonus cap


Chancellor George Osborne is in Brussels determined to water down the European Parliament’s proposals to curb bankers’ bonuses.

But EU finance ministers in the Economic and Financial Affairs Council (Ecofin) are expected to approve last week’s proposals.

They include limiting bonuses to 100% of a banker’s annual salary or to 200% if shareholders approve.

The City of London fears the rules will drive away talent and restrict growth.

Right let me get this straight having said at various points that he would get tough on bankers’ bonuses George Osborne is meeting with other EU members to stop them capping bankers’ bonuses.

I get the argument that if you squeeze bankers too much it will drive talent away etc. But it doesn’t really work here, because if these proposals are approved and are put into place across the EU where would all the bankers go, they can’t all go to China, America etc.   

And however you look at it a bonus of up to 100% of their annual salary or 200% if the shareholders approve, is still a very generous deal.  

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