Incoming European Commission president Jean-Claude Juncker is to cut pay policy from the role of the EU financial services commissioner, just a week after handing the job to the UK’s Lord Hill.
The Financial Times reports Juncker made the decision to deprive Lord Hill of responsibility for overseeing pay in the industry in a bid to appease MEPs who planned to block the appointment because Hill is considered too close to the interests of the City of London.
Instead, new EU justice commissioner Věra Jourová from the Czech Republic will be in charge of remuneration, including enforcing the cap on bankers’ bonuses.
Juncker’s original mission letter to Hill said he should “avoid wrong incentives for managers”, implying pay issues would remain in his remit.
Last week, experts told Money Marketing the appointment of the Conservative peer, whose portfolio includes financial stability, financial services and capital markets union, could signal the start of less regulatory intervention from Europe.