The UK Treasury’s objection to the proposed EU bankers’ bonus cap will be heard in the European Court of Justice on Monday.
If introduced, the new rules will cap all bankers’ bonuses awarded from 2014 at a years basic salary. If shareholders approve, this may be increased to double their salary in some cases.
However, the Treasury question whether the measures will increase stability in the financial sector, and argue the cap has been “rushed through without a proper impact assessment”.
It says the impacts of the cap are “likely to run counter to the stated objectives of the legislation, which are to ensure banks are safer, more stable, and prudentially sound”.
Banks too have argued that the rules would mean they have to pay employees higher basic wages to keep hold of them, leaving the institutions vulnerable if costs need to be cut during tough times.
The hearing in Luxembourg will be the final stage in the lengthy legal process, which the UK opened in September. The court’s final ruling is not expected until 2015.
In recent months, investors have increased pressure on banks to reduce “excessive” bonuses.
In June, the government blocked the Royal Bank of Scotland’s plans to pay executives bonuses worth 200% their basic pay, with the backing of shareholders.
Photo: Garry Knight via Flickr
RBS to give £3.5m in shares to top executives
Bankers could face tougher regulation, including bonus clawback
RBS and WPP latest firms to face investor anger over executive pay
Top banking chief executives saw 10% pay rise in 2013
Barclays and BP remuneration packages lead to tough questions from investors
Like our Facebook Page
How Cities In Canada Are Addressing Climate Change
10 Tax Incentives for Businesses That are Lowering their Carbon Footprint
How to Manage Anxieties About Climate Change
Green Brands Must Understand Their Customers to Market Wisely
Key Necessities for Starting an Eco-Friendly Freelance Business
6 Ways To Overcome Cash Flow Challenges as a Green Business
Going Cashless Lowers Our Carbon Footprint and Has Other Pros and Cons
How to Be as Eco-Friendly as Possible on a Trip to New York
Why Brazed Plate Heat Exchangers Are Eco-Friendly
6 Steps For Making Crypto & Blockchain Eco-Friendly
How To Use Solar Power Sustainably At Home
Building a Career in Green Construction: Tips and Insights
Solar-Powered Security Systems: Protecting Your Home and the Environment
Top 5 Benefits of Workplace Sustainability
The Role of Smart Technology in Managing EV Charging Stations
4 USA Vacation Destinations for an Eco-Friendly Trip
Why Internet Faxing Is A Sustainable Business Move
5 Ways Eco-Friendly Employers Can Boost Efficiency
6 Wastewater Management Tips to Reduce Water Pollution
What to Look for When Choosing an Eco-Friendly Locksmith
- Environment3 months ago
6 Home Improvements You Can Make to Help the Environment
- Environment10 months ago
4 Countries That Have Banned Single-Use Plastic
- Features9 months ago
5 Huge Support Tips for Eco-friendly eCommerce Brands
- Environment7 months ago
How to Ensure Your Home’s Eco-Friendly During Construction?