Philippe Lamberts, the Belgian Green MEP who helped devise the restrictions of the EU's cap on bankers' bonuses has called for the UK government to be sued for allowing banks to sidestep the new rule. He said it was clear the UK was failing to implement EU law and accused the coalition of having no interest in halting "absurd remuneration packages". He urged the European commission to take the UK to court for allowing bankers to bend the rules which limit bonuses to 100% of salary or 200% if shareholders approve. http://www.theguardian.com/business/2014/mar/04/bankers-bonus-cap-architect-says-sue-uk-government
Barclays and the bailed-out Lloyds Banking Group are expected to reveal they are handing their bosses Antony Jenkins and António Horta-Osório new share awards, on top of their salaries, to prevent their overall pay falling as a result of the cap. Lloyds has already announced that Horta-Osório is receiving a £1.7m bonus for 2013 and is likely to reveal a payout from a long-term incentive plan of around £2.9m. This follows HSBC's move to pay its chief executive, Stuart Gulliver, an additional £32,000 a week in allowances on top of his £1.2m salary, and after Virgin Money raised the salary of its boss, Jayne-Anne Gadhia, to £637,000 from £550,000 as a result of the restriction. Royal Bank of Scotland, which is 81% owned by the taxpayer and paid out £567m in bonuses after making an £8bn loss.
"What we are witnessing now is an attempt by the major banks, with the support of the British government, to circumvent the rules and that is to compensate what we did on terms of structure, by just raising the fixed rate of remuneration," said Lamberts.
The chancellor, George Osborne, is challenging the bonus cap in the EU's highest court. The Bank of England governor, Mark Carney, is also opposed to the restrictions. The MEP insisted "People like David Cameron and George Osborne are part of the same club. These are people who are really out of touch with reality. They are part of the same class, so I think it is natural for them to defend their interests."
There is a rather consistent pattern in the government policy to business and particularly the financial sector. The chancellor warned that the UK would leave the EU unless the Lisbon Treaty was changed to prevent the imposition of financial services legislation that might rein in the City. In January, George Osborne set out one of the key demands Britain will be making and must be met if Britain is to stay inside the EU and it is "cast-iron legal protections for the City of London."
60% of the EU's financial services industry located in the UK and the government regards its prosperity as a matter of national security, its interests to be weighed against other geopolitical considerations such as our membership of the EU and even above and beyond the principle that the violation of the borders of sovereign states such as Ukraine by Russia may demand economic and financial sanctions.
It is clear different rules apply to the Square Mile.
Barclays and the bailed-out Lloyds Banking Group are expected to reveal they are handing their bosses Antony Jenkins and António Horta-Osório new share awards, on top of their salaries, to prevent their overall pay falling as a result of the cap. Lloyds has already announced that Horta-Osório is receiving a £1.7m bonus for 2013 and is likely to reveal a payout from a long-term incentive plan of around £2.9m. This follows HSBC's move to pay its chief executive, Stuart Gulliver, an additional £32,000 a week in allowances on top of his £1.2m salary, and after Virgin Money raised the salary of its boss, Jayne-Anne Gadhia, to £637,000 from £550,000 as a result of the restriction. Royal Bank of Scotland, which is 81% owned by the taxpayer and paid out £567m in bonuses after making an £8bn loss.
"What we are witnessing now is an attempt by the major banks, with the support of the British government, to circumvent the rules and that is to compensate what we did on terms of structure, by just raising the fixed rate of remuneration," said Lamberts.
The chancellor, George Osborne, is challenging the bonus cap in the EU's highest court. The Bank of England governor, Mark Carney, is also opposed to the restrictions. The MEP insisted "People like David Cameron and George Osborne are part of the same club. These are people who are really out of touch with reality. They are part of the same class, so I think it is natural for them to defend their interests."
There is a rather consistent pattern in the government policy to business and particularly the financial sector. The chancellor warned that the UK would leave the EU unless the Lisbon Treaty was changed to prevent the imposition of financial services legislation that might rein in the City. In January, George Osborne set out one of the key demands Britain will be making and must be met if Britain is to stay inside the EU and it is "cast-iron legal protections for the City of London."
60% of the EU's financial services industry located in the UK and the government regards its prosperity as a matter of national security, its interests to be weighed against other geopolitical considerations such as our membership of the EU and even above and beyond the principle that the violation of the borders of sovereign states such as Ukraine by Russia may demand economic and financial sanctions.
It is clear different rules apply to the Square Mile.
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