Bonus cap might give rise to basic salaries

Bonus cap might give rise to basic salaries

Financial sector experts have said that the new limit announced by the European officials on the amount of bonus that can be given to banking officials will result in higher basic salaries among other initiatives giving additional benefits to the bankers.

Bankers in the leading financial hub of London are particularly concerned over the limits but experts believe most of them already have ways to circumvent the new legislations. Experts said that if there are restrictions on paying bonuses, the banks will simply increase other allowances for the officials. Many expected the basic salary component in the packages to rise following the imposition on the limit on the payment of bonuses.

There are indications that the European Banking Authority would limit extra pay-outs for anyone whose salary is above €500,000. The EBA proposals are scheduled to take effect in 2014-15, will also require bonuses of some officials to be capped to 100 per cent of their salary or 200 per cent with the approval of shareholders.

The influential financial sector of the UK is opposing the agreement that was reached in the previous week because it believes that the agreement will put the region in a disadvantageous position and the financial firms will move to other financial hubs of the world. The agreement states that banks will not be allowed to give out bonuses that are bigger than the base salaries of bankers to them from next year onwards.


FrenchTribune Specials

FBI will likely not notify Apple about how it unlocked Syed Farook’s iPhone

On Monday, a federal law enforcement official said that the US Federal Bureau of Investigations (FBI) will not likely notify tech giant Apple about the mechanism it used for unlocking the iPhone used by San Bernardino shooter Syed Rizwan Farook.

The FBI managed to unlock Farook’s iPhone by paying an amount of over $1.3 million to an ‘...

Most Popular

Microsoft to stop manufacturing new Xbox 360 consoles

In an announcement made via a blog post on Wednesday,...

Apple refreshes 12-inch MacBook with Retina display

In a Tuesday announcement, tech giant Apple said that it...

Yahoo reports sharp plunge in net revenue in 2016 Q1

On Tuesday, Yahoo reported its earnings for the 2016...

Apple’s 2016 WWDC to be held from June 13-17; ticket registration now open

On Monday, tech giant Apple officially announced that...

Poll

Can Greece Come out of Economic Problems: