Euro-MP tackles bankers’ bonuses

AN Oldham Euro-MP has secured a crucial deal aimed at ending the bankers’ bonus culture.

Arlene McCarthy, the North-West Labour MEP who is vice-chairman of the European Parliament’s Economic and Monetary Affairs Committee, has helped frame new laws to end the risk-taking culture in banking that led to the global economic crisis.

The deal reached in a series of talks between the European Parliament, Council and Commission will mean that new rules will be implemented for the next bonus season.

They include: a lower proportion of bonus paid out as cash, less of the bonus paid up front, the remainder reliant on company performance, and at least 40 per cent locked away for three years.

Bonuses will be capped to salaries and there will be strict limits on bonuses in bailed out banks, which must prioritise repaying taxpayers.

Ms McCarthy said: “A high-risk and short-term bonus culture wrought havoc with the global economy and taxpayers paid the price.

“The public want banks to prioritise stability and lending over their own pay and perks.

“In the last two years the banks have failed to reform, and we are now doing the job for them.

“At a time when governments are inflicting spending cuts on the public, including pay cuts for public sector workers, it would be obscene to allow the discredited bank bonus culture to continue.”