This week it has been revealed (and its the first data since the bonus-cap guidelines were introduced) the disparity of contentious bonus-cap guidelines throughout the European Union has been underscored by recent official statistics that a anonymous UK-based asset supervisor earned a €34m bonus which is a little more than his meagre salary of €199,000.
The quantity of high earners soared in 2015, leaping 33 per cent on 2014, to five,142 throughout the EU. The EBA attributed this enhance to the weak euro towards the pound on the time. Sterling’s power towards the euro has since evaporated after the UK’s Brexit referendum final June.The average ratio of bonuses to fixed income rose, despite the ban, from 127 per cent to 147 per cent, according to the EBA.
The UK oddly was initially a huge critic of the cap generally, launching a legal challenge before eventually abandoning it. The UK believes that the cap distorts fixed pay, and makes it harder for regulators to insist on meaningful clawback of compensation if there is misconduct.
The UK’s highest-earning asset supervisor nonetheless needed to defer practically half of their bonus, the EBA’s statistics present.
Even in banking, the place the bonus cap applies, the UK was nonetheless home to the best-paid staff.
One UK funding banker was paid an €8m bonus on high of his or her €11m wage, whereas a supervisor of a UK-based establishment was paid variable pay of slightly below €14m in addition to €12m wage, the information presented.
