It appears – well, according to this RTE article – that the EU is getting closer to a point where caps will be put on the amount of money bankers can be paid in bonuses.
From the article:
Should politicians be able to set limits on what bankers can be paid, if they are working for private institutions?European lawmakers see a cap - possibly limiting bonuses to double base salary - as the only way to rein in runaway pay, reduce incentives for risk and make banks safer. Talks between EU country ambassadors about the rules broke up last week amid clashes over how far to go. But tougher rules seem certain.
"There will definitely be a bonus cap," said one official. "It's just a question of how much."
Could this lead to a brain drain from European banks?
Could this have the opposite effect, and result in less-competent people working in banking?
Rather than targeting bonus payments, should it not be enough to ensure banks are adequately regulated, that those individuals regulating them are paid salaries that are attractive to people with good banking experience, and that if banks fail, they are allowed to fail?
Is this proposal a populist measure or does it make sense?
Are there other sectors which should have pay-caps imposed on them?
EU moves closer to caps on banker bonuses - RTÉ News