While the EU should be applauded for tackling the thorny issue of bank bonuses, my concern is that the plan to cap payouts at a year\’s salary will have perverse consequences. Already base salaries in the banking sector have been rising sharply as regulators try and choke off the multimillion-pound annual bonus awards. The EU\’s plan could lead to more pressure for a rise in fixed pay.
Banks have increased salaries across Europe by 37% in the past four years in response to a crackdown on bonuses and pressure from regulators to claw back some rewards if bets go wrong later on.
So why in buggery has your \”High Pay Commission\” been wibbling about limiting bonuses these years then?
After all, a number of people did point out that this would happen when you first started wibbling, didn\’t they?