.jpg)
In response to the news that the European Parliament has approved rules to cap bankers’ bonuses, Tom Walker, Employment Law Partner at Manches, says:
"It is not very clear what the measure of capping bankers' bonuses is supposed to achieve. It isn't related to a bank's capital or balance sheet position so has no effect on capital requirements that is the real subject of the directive. It doesn't address total pay so companies could just agree higher basic pay and lower bonuses - perversely loosening the link between pay and performance - or the public opprobrium attached to high pay will simply drive top bankers abroad, thus weakening the UK's and EU's position in the banking sector.”
