EU Proposal Sets Groundwork For Banker Bonus Cap

Law360, New York (May 21, 2013, 6:25 PM EDT) -- The European Banking Authority on Tuesday released draft rules national regulators will follow when determining which bankers will have their bonuses capped as part of new risk-prevention mechanisms that take effect early next year.

The capital rules the European Parliament approved last month capped bonuses for top-level bankers at an amount equal to their yearly salary, or two times their salary with shareholder approval. However, the rules did not establish universal standards for regulators to determine which bank employees would be subject to that cap....
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