Osborne files bonus complaint
George Osborne has filed a formal complaint against Brussels over plans to cap bankers' bonuses due to fears the move will backfire and drive up salaries.
What is the EU proposal to cap bankers' bonuses?
The European Parliament have agreed legislation to cap the total sum a banker can be paid in bonuses.
The new regulations are aimed at "stabilising" banking culture, curbing "excessive risk-taking" with a view to make banks "more resistant to crises", according to MEPs.
- Bonuses will be capped at a year's salary, but a bonus worth 200% of salary can be awarded with the approval of shareholders
- If more a bonus of more than 100% of salary is awarded, it has to be authorised by holders of half the bank's shares
- If a bonus of more than 100% of salary is awarded, then a quarter of the whole bonus would be deferred for at least five years in an effort to "encourage bankers to take a long-term view" according to MEPs.
The legislation is due to be implemented into national law by January 2014.
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