Financial Conduct Authority chief executive Martin Wheatley has warned the EU’s plans to cap bonuses could see bankers’ salaries double.
According to the Guardian, Wheatley said Europe’s plan to cap bonuses at 100 per cent of salary for those earning more than €500,000 could make it difficult to claw back payments if necessary.
Wheatley said the last time regulators attempted to restrict bonuses, middle-ranking bank staff saw their pay go up “by 100 per cent”. He added: “And the same thing will happen again.”
Earlier this year, the EU proposed a cap on bankers’ bonuses of 100 per cent of their salary, or 200 per cent with significant shareholder approval.
The European Banking Authority is set to publish details of the cap next week when the rules will be put out to consultation.
PricewaterhouseCoopers has warned the EU is set to hugely expand the scope of the bankers’ bonus cap to hit 10 times more people than initially thought.