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Banker Bonuses Have Nowhere to Hide Under EU's Final Pay Rules

  • EBA issues guidelines for bonus and compensation rules
  • No exemptions for bonus cap, EBA outlines strict criteria
Source: Getty Images

European Union regulators have drawn the line between fixed and variable pay: the bonus cap will receive no exemptions, and cash allowances will be closely scrutinized to avoid a circumvention of the rule.

The European Banking Authority has issued its final guidelines on remuneration Monday. While the London-based standard-setter for EU banking supervision gave leeway to smaller banks and operators through a handful of waivers, it makes it clear that the ban on bonuses of more than twice fixed pay will be enforced.