Banker Contracts Under Scrutiny as EBA Polices Bonus Cap
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The European Union’s top regulator is poring through bankers’ contracts as it polices the bloc’s new bonus caps, according to two people familiar with the matter.
The European Banking Authority is analyzing the legal language of bankers’ employment contracts to determine how so-called role-based allowances are factored into their pay packets, the people said. Banks such as HSBC Holdings Plc, Barclays Plc and Royal Bank of Scotland Plc have used such awards to get around the EU ban on bonuses worth more than twice fixed pay.