Politics

EU Parliament insists on limits on bonuses

In the European Parliament, willingness to give greater leeway to shareholder meetings in approving high bonuses for bank managers than previously planned is growing. Under discussion is a ratio of bonuses to fixed salary of one to five. This proposal was tabled by the Cypriot EU Presidency in the negotiations on the new EU Capital Requirements Directive (CRD IV) for banks. Without shareholder approval, the entire bonus cannot be more than three times higher than the fixed salary; the total bonus must also cover payments for later years. The instant bonus payment in cash or in securities should according to Cyprus not exceed the fixed salary. So far, the EU parliament had advocated that at most twice the base salary may be paid. Christian Democrats and Liberals want to keep the position that normally the bonus may not exceed the fixed salary, it was said.