Referring to anonymous sources, the Wall Street Journal reports that officers of large British banks might be able to evade bonus restrictions imposed by the EU authorities.
According to the journal’s information, a dozen of financial institutions including Barclays, J.P. Morgan Chase & Co., and HSBC are considering the possibility to hike several times top managers’ monthly benefits for meals, transportation, and communication. This way, bankers and traders are going to maintain their incomes while the EU requirements are being satisfied.
The Wall Street Journal gives an example what way such benefits are going to be estimated. Nowadays, a trader earns nearly £2 million per year on average; a £200,000 basic salary plus a £1.8 million bonus is added. So, taking into account the supposed changes, the overall income will comprise the same basic salary, £1 million bonus and a variety of allowances worth £800,000.
Eventually, EU officials admitted that bankers’ bonuses have to be curbed by an annual salary including different allowances starting from February next year. Meanwhile, no restrictions on bankers’ annual allowances have been placed so far. However, the mass media do not eliminate the scenario that the European authorities might opt for this move.
The aftermath of crisis 2008-2009 made banking watchdogs ponder on curtailing bonuses for moneymen. Experts opposing enormous remuneration to top managers in large banks note that once hazardous deals of moneymen craving for high bonuses triggered the crisis development as a result.
