EU Passes New Restrictions On Banker Bonuses

Law360, New York (July 7, 2010, 12:35 PM EDT) -- The European Parliament passed legislation Wednesday to crack down on bonus payments for bankers by requiring banks to cap up-front cash payments and pay a portion of the bonus in contingent capital and shares.

Upfront cash payments will be capped at 30 percent of the total bonus and 20 percent for particularly large bonuses, and at least half of any bonus will be paid in contingent funds under the proposal passed Wednesday, Parliament said.

Between 40 and 60 percent of any bonus will have to be...
To view the full article, register now.