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

Bonus for avoiding whales for ships

Cargo ships in the US are being paid a bonus for avoiding collisions with whales and protecting the mammal at seas.

Records showed that companies are paid US$2500 for each ship that reduces it speed in order to reduce the number of whales killed at seas. An initiative was tried at waters off Santa Barbara that is both a maritime...

Most Popular

Family Dollar eyeing for Seats at Family Dollar

On Friday, Hedge fund Elliott Management Corp. stated...

Canada Bans Large-Scale Fishing in Swath of Beaufort Sea in Arctic

On Friday, Canada limited large-scale commercial fishing...

Three Kuiper Belt objects uncovered by NASA’s Hubble Space Telescope

NASA's Hubble Space Telescope has found three Kuiper...

Microsoft building "new container technologies" into a Windows Server update

According to a Microsoft announcement, "new container...

Poll

Can Greece Come out of Economic Problems: