European Banking Authority Proposes Stiffer Bonus Rules

The European Banking Authority proposed to make it harder for lenders to sidestep limits on bonuses by plugging loopholes used to give discretionary payments on top of salary. The eurozone’s watchdog published Wednesday the revised guidelines and put out to consultations for three months. Bonus rules: There is no third category of remuneration According to the EBA’s revised guidelines, remuneration is either fixed or variable; there is no third category of remuneration. The EBA said: “The correct mapping into these two categories is crucial for the calculation of the ratio between the variable and the fixed component and to safeguard…