Cap Bankers’ Bonuses at Their Pay Level, Schaeuble Urges in FT

Cash bonuses for European bankers should not exceed their fixed pay, German Finance Minister Wolfgang Schaeuble wrote in the Financial Times.

He also urged that shareholders should have the final say on bank executives’ long-term pay awards if they exceed a given level.

“A truly effective European banking supervisor” is needed to oversee the sector, enforcing “a robust single rule book,” Schaeuble wrote.

The supervisor, who Schaeuble said is expected to be housed at the European Central Bank, should focus on those banks that can pose a systemic risk at a Europe-wide level, he wrote.

The new oversight system must not be “just a facade,” he wrote, adding that the new supervisor must be endowed with “real and clearly defined responsibilities, coercive powers and adequate resources.”

To contact the reporter on this story: John Simpson in Toronto at jsimpson12@bloomberg.net

To contact the editor responsible for this story: Andrea Snyder at asnyder5@bloomberg.net

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