Bonus cap: more staff to be within scope

22nd May 2013
employment

On 16 April 2013, as previously reported, the European Parliament adopted CRD4 – the fourth amendment to the Capital Requirements Directive (“Directive”). CRD4 includes a cap on bankers’ bonuses of 1 x salary. The cap can be increased to 2 x salary with appropriate shareholder approval, although at least 25% of any bonus in excess of 1 x salary must be deferred for at least five years.

The cap will apply to certain catego...

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