Paula Dwyer , Columnist

Capping Bankers' Bonuses Is a Blunderbuss Idea

February 28, 2013 at 8:55 PM UTC

Paula Dwyer is a senior editor with the New York editing hub, focusing on daily and long-form enterprise. She was London bureau chief for Businessweek and Washington economics editor for the New York Times, and is a co-author of “Take on the Street: How to Fight for Your Financial Future.

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The European Union is about to do something remarkably lame: ban bonuses that are more than twice bankers' salaries.

The rules, which would limit bonuses to one times salary -- two times base pay is possible, but only if a supermajority of shareholders approve -- are supposed to take effect next year. The cap would apply to EU bankers anywhere in the world.