New bonus rules to limit EU bankers’ pay

New EU bonus rules introduced last week have left banks scurrying to amend executive pay arrangements, reports FT.com.

The new rules limit senior bankers’ bonuses to the level of their salaries, or to double that amount with shareholder approval. “While banks and their investors say it is too early to predict how pay deals will be restructured, most remuneration experts believe there will be significant salary inflation to offset the caps. Annual bonuses and long-term incentive plans are also likely to be amalgamated,” the report explains.

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