Tue Feb 19, 2013, 05:27 AM
dipsydoodle (42,239 posts)
EU seeks deal on fixed-salary cap for bankers' bonuses
(Reuters) - Bankers' bonuses could be pegged at no more than their annual salaries if European Union lawmakers and member states reach agreement in key talks on Tuesday.
Representatives from European Union states and the European Parliament are meeting to thrash out a deal on an EU law to implement a global bank capital accord known as Basel III, the world's regulatory response to the 2007-09 financial crisis.
The negotiations have dragged on because the European Parliament, in response to anger from investors and the public over the role played by banks in the financial crisis, also wants to peg bonuses to no more than annual fixed pay, a provision not in the Basel accord.
Member states had failed to agree on this until last Thursday when ambassadors from the 27 EU states gave Ireland, holder of the bloc's rotating presidency, a mandate to negotiate a cap after Britain failed to muster enough support to block one.
Read more: http://uk.reuters.com/article/2013/02/19/uk-eu-banks-bonuses-idUKBRE91I00H20130219
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EU seeks deal on fixed-salary cap for bankers' bonuses (Original post)
Response to AlbertCat (Reply #2)
Tue Feb 19, 2013, 06:53 PM
amandabeech (9,838 posts)
4. No. We have never had a law capping executive pay.
Companies whose stock trades on the open market must divulge executive pay including bonuses and stock options, etc.
It is up to the shareholders to vote out directors who approve excessive pay.
Which almost never happens, of course.
Response to dipsydoodle (Original post)
Tue Feb 19, 2013, 12:57 PM
smccarter (145 posts)
3. This is the correct direction.
It's obscene the amount of money "earned" by executives in the corporate world. If a salary cap were mandated, there would be less room for fraud in the corporate world. Greed leads to fraud.
And just think... these companies would have more money to both increase worker salaries and invest in infrastructure. That would be interesting to see. Instead of one man/woman (or a few men/women) absorbing the lions share of company profit, that money would go to something that will actually help the company.