http://news.yahoo.com/s/afp/20100707/bs_afp/eufinanceeconomybankingregulatepaybonus_20100707115201The European Parliament sounded the death knell for unrestricted bonuses for some bankers and traders in Europe on Wednesday when it approved limits due to come into force in January.
The action was a response to public outrage in the face of bonuses seen as excessive during the global financial crisis.
The new EU rules will mean a far lower proportion of cash in the bonus, which would be much less payable upfront. Remaining sums would be "contingent" on subsequent company performance as well as directly linked to salaries.
From January 2011, 60 percent of bonuses should be variable and for future payment only, with at least 40 percent of such revenue locked away for three years, according to the legislative text.
Cash payments are capped at up to 30 percent of the total bonus