Chad Bray, The New York Times | December 21st, 2015
Small banks and some other financial institutions in Europe should be exempt from some of the limits on bankers’ bonuses, the European Union’s banking regulator said on Monday.
The opinion, by the European Banking Authority, would still require a change in European Union law to carry out. But the guidance is meant to clarify disparity in the interpretation and enforcement of the bonus rules.
The European Union’s executive arm this year determined that the bonus and related compensation rules should apply without exception to all financial firms. But some national regulators — including Britain’s — have been exempting smaller banks from the bonus cap, which limits bonuses to an amount equal to one or two times an employee’s salary and other compensation that is not based on performance. […]
