European Union plans to cap fund manager bonuses could be watered down after a leading MEP signalled he was ready to compromise, although the UK is likely to push for further concessions.
The FT reports that German MEP Sven Giegold, the man behind the bankers’ bonus cap in CRD IV, said he is open to a higher cap for fund managers.
Last week, the economic and monetary affairs committee voted to impose a cap on bonuses equivalent to 100 per cent of fund manager salaries.
The committee’s plan will now be put to a vote for the entire European Parliament in April. If passed, it will then be considered by the European Commission and EU finance ministers when it could become EU law.
Giegold told the FT: “If giving fund managers the possibility to raise the bonus-salary ratio from 1:1 to 1:2 will help reunite the parliament, I’m happy with that as long as shareholders or investors can approve the 1:2 increase.”
He said he would be happy if the same rules for bankers’ bonuses were introduced whereby a 100 per cent cap could be raised to 200 per cent with significant shareholder approval.
Cicero Group account manager James Hughes says: “We would expect there to be a stronger alliance in Council against the plans than we saw for the bonus debate in CRD IV as a number of countries have asset management sectors that they will want to defend. It is not just the UK on this one.”