SPIEGEL ONLINE INTERNATIONAL: France, Germany and the EU are launching a major offensive to change the system of bonuses paid out to bank employees. Knowing that it won't work anywhere if it isn't implemented everywhere, they are hoping to make it a major issue at the upcoming G-20 summit in Pittsburgh.
The debate surrounding bankers' bonus payments has finally reached Brussels. In an interview with the daily Hamburger Abendblatt, European Commissioner for Enterprise and Industry Günter Verheugen said that the European Union will reach an agreement very soon on limiting the income of bank managers.
Verheugen also told the paper that the European Commission believes that, when it comes to a bank's system of compensation, there should be "no direct relation with a company's short-term profits." Instead, he is confident that the EU's member states and parliament will be able to reach a swift agreement on the issue.
Likewise, Verheugen also voiced his support for measures to impose high taxation rates on the bonuses of bankers whose companies receive state support. "What we're really talking about here," Verheugen told the paper, "is figures arising when a company has been kept alive by the state for a long time." >>> wal/jtw - with wire reports | Wednesday, August 26, 2009
