Bowles: “Today’s agreement on a bankers’ bonus cap will usher in a much needed culture change”

Sharon Bowles MEPFinal agreement on a cap for bankers’ bonuses will be reached tonight in Brussels with the completion of the last trialogue negotiation between the European Parliament and European Commission. 

New rules on bonuses, incorporated in the updated Capital Requirements Directive (CRD), include:

  • A salary / bonus ratio of 1:1 which can be raised to 1:2 with a shareholder vote of 65% if there is a 50% quorum or 75% vote if no quorum applied.
  • Up to 25% of the bonus can be paid in long-term instruments (deferred for five years) linked to the capital, and therefore stability, of the bank.* Continue reading