The European Parliament and member states are approving a draft law to be implemented within the Basel III framework which would see tougher curbs on bankers’ pay and capital surcharges for big banks, reported Reuters.
One lawmaker has proposed variable pay should not be more than double fixed salary. Another said there was cross-party backing for using the draft law to implement a capital surcharge agreed by the G20 on 28 of world’s biggest banks from 2016.
Meanwhile Sharon Bowles, British Liberal chairman of the parliament’s economic affairs committee, proposed “golden hellos” – big monetary incentives used to lure bankers from rivals – should be clawed back when a banker’s performance falls short.
The European crack-down comes amid continued anger over bankers’ pay. In January RBS chief Stephen Hester refused to take up a £1m bonus amid mounting political pressure not to take the controversial payment.
