EU Court adviser maintains bankers bonus cap
The Advocate General of the EU Court of Justice has today rejected the UK’s challenge to its cap on bankers’ bonuses. The cap restricts bonuses to 100% of banker’s pay or 200% with shareholder approval.
The Advocate General’s opinion is not legally binding, but is generally followed in the majority of cases. The Court of Justice in Luxembourg is likely, therefore, to take on board his reasoning in reaching its final verdict in 2015.
Many banks, particularly in the City of London, have tried to get round the bonus cap by bumping up fixed salaries.