EU AGREES BANK BONUSES LIMIT DEAL
Baku, June 30 (AZERTAC). The European Union has agreed a deal to limit the proportion of bankers` bonuses that can be paid up front, according to BBC.
Under the draft rules, most banking executives will receive no more than 30% of their bonus immediately and in cash, or 20% for larger bonuses.
The rest will be delayed and paid out depending on long-term performance, the deal between EU governments and the European parliament said.
Bonuses will also be more closely linked to salaries.
Furthermore, large severance packages for departing executives will also be limited.
The draft rules will be put to vote at the European Parliament next week, but are likely to become law following this agreement.
The rules will then come into law across Europe at the beginning of 2011.
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