Brussels, 26/06/2014 (Agence Europe) - The technical rules to identify bankers whose work affects risk at the bank and who are therefore subject to the bonus cap came into force on Thursday 26 June.
These standards supplement the requirements of the capital requirements directive (CRD IV) and lay down qualitative and quantitative criteria - such as total pay of above €500,000 a year or being one of the 0.3% of the bank's most highly paid workers - for deciding whether the bonus cap shall apply. Under the bonus cap, the bonus may not exceed fixed pay (double that if shareholders give the nod) (see EUROPE 11031).
The European Banking Authority (EBA) is currently examining the way that banks are trying to wriggle round the bonus rules by introducing specialisation “allowances” to boost top earners' pay (see EUROPE 11101). (MB)