The UK has been left isolated as the EU pushes ahead with its decision to cap bankers’ bonuses.
Chancellor George Osborne was in Brussels yesterday for a meeting of the EU’s 27 finance ministers to discuss CRDIV.
The directive is primarily designed to introduce Basel III capital requirements but the legislation has other issues around bonuses and country reporting attached to it.
The FT reports that an overwhelming majority backed a bonus cap of 100 per cent of basic salary that could rise to 200 per cent with significant shareholder approval.
The new rules will apply to bankers operating outside of the EU but within an EU-based bank with major implications for the likes of Barclays and Standard Chartered.
PricewaterhouseCoopers head of reward practice Tom Gosling told the FT the deal “reflects pretty much the worst case outcome for banks based in London and EU banks in particular”.
Ministers are expected to finally vote on the measures in April. The Irish presidency has made it a priority to approve CRD IV before its term finishes in July.