March 7, 2014 / 10:51 AM / in 4 years

EU lawmakers to study bonus rule as banks take evasive action

LONDON, March 7 (Reuters) - European Union lawmakers will consider toughening up the bloc’s cap on bankers’ bonuses after lenders have begun softening its impact by awarding extra “allowances” to top up fixed pay.

It is one of the most high-profile rules from the 28-country bloc following public anger over high pay at banks, many of whom were propped up by taxpayers in the 2007-09 financial crisis.

The cap, which limits a bonus to no more than fixed salary, or twice that level with shareholder approval, will affect awards for 2014 that will be handed out early next year.

Sharon Bowles, the British Liberal Democrat chair of the European Parliament’s influential economic affairs committee, said some lawmakers are complaining the rule is not strict enough.

“We are going to have a discussion on this in committee on Monday night,” Bowles told Reuters on Friday.

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