Good news for Hedge Fund recruitment19 April 2013
To curb speculative risk-taking, the European Parliament has voted to cap bankers’ bonuses.The basic salary-to-bonus ratio will be 1:1. This could be raised to a maximum of 1:2, if approved by at least 66% of shareholders owning half the shares represented, or of 75% of votes if there is no quorum.
To encourage bankers to take a long-term view, a minimum of 25 % of any bonus exceeding 100% of salary, must be deferred for at least five years.
The new rules will apply from 1 January 2014 if approved by the Council of Ministers.
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