Non-EU Banks Slip Through Bonus Cap Loophole

Non-EU Banks Slip Through Bonus Cap Loophole

Wall Street banks can raise bonuses without a vote from their parent’s shareholders under new EU rules,

Major global banks such as Morgan Stanley and Nomura are benefiting from a loophole in new European pay rules that could leave British rivals at a big disadvantage.

Sky News understands that banks based outside the European Union (EU) are able to approve bigger bonuses for employees of their subsidiaries in the trading bloc without recourse to external shareholders.

That means Wall Street and Asian banks can instantly consent to variable pay for senior staff worth double the level of their salaries, the maximum permissible under the new EU cap. read more

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