MEPs yesterday voted by 625 to 28 in favour of new rules to curb bankers’ bonuses, which will see bankers required to defer 40 to 60 percent of bonuses for three to five years, while half of any immediate bonus must be paid in shares or in other securities linked to the bank’s performance. As a result, bankers will only be able to receive between 20 and 30 percent of any bonus in upfront cash. The legislation calls on national regulators to implement the rules by January 2011, reports the FT.
The rules already have the backing of member states – who will likely rubber-stamp them in a meeting of finance ministers next Tuesday. The WSJ reports that EU officials said the rules would apply to banks and investment firms, but not hedge-fund managers, though they would apply to investment firms that manage hedge-fund assets.
Source: Wall Street Journal