Top European Union officials have agreed to slap a strict limit on bankers' bonuses, which have been blamed for encouraging the risk-taking behaviour that triggered the financial crisis.
The move is part of a broad package of financial laws that includes requiring banks to hold more capital reserves in an effort to shield taxpayers from having to pay for more expensive bailouts.
Bankers' bonuses will be limited at a maximum of one year's base salary and will only be allowed to reach twice the fixed pay if a large majority of a bank's shareholders agrees, Othmar Karas, the European Parliament's chief negotiator, said Thursday.
Read more: Europe caps bank bonuses at double annual salary - Business - CBC New
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