Pangs of further pay-related pain

The European Union is by no means sated in its efforts to reform unhealthy remuneration structures in the financial services sector and 2013 looks to be a year of even more regulation in this area. Alex Beidas summarises the key developments.

Alex Beidas is a managing associate in Linklaters’ London employment and incentives team. Contact her on alexandra.beidas@linklaters.com.

CRD IV, including proposed bonus caps

Overview

Although the amendments made to the Capital Requirements Directive in 2010 (CRD III) brought about major change for banks and asset managers, they did not regulate the amount that firms pay their staff . The EU is currently trying to finalise a revised version of the Capital Requirements Directive (CRD IV), under which a cap on bonuses and other variable pay is proposed.