Euro MP wins battle for bankers' bonuses and pension pots to be performance-linked
June 15, 2010 10:40 AM
Originally published by Sharon Bowles MEP
Originally published by Sharon Bowles MEP
Sharon wants an end to taxpayer-led bailouts
Lib Dem MEP Sharon Bowles, Chair of the European Parliament's Economic and Monetary Affairs Committee, has successfully tabled amendments in the European Parliament calling for top bankers' bonuses to be paid in contingent capital rather than cash or shares.
Contingent capital is a certain type of asset that, during periods of financial stress, can be converted into equity to bolster a firm's capital position. Therefore if a bank suffers big losses it would be the bonuses and pensions of top bankers and traders that would be under threat before taxpayers' money.
Sharon Bowles said:
"I want banking to return to the idea that existed in private banks when partners had their own money on the line and had a vested interest in the long-term health of the bank.
"If bankers and traders want to leave and go to other jurisdictions, it just shows that they do not have confidence in their own performance. To those that would leave I say good riddance."
ENDS
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