EU: Limits to be imposed on finance sector remuneration

The EU institutions approved in July 2010 a set of binding Europe-wide rules on remuneration policy for senior staff in banks, aimed at ensuring that compensation systems are in line with banks' long-term interests and do not encourage excessive risk-taking.

The rules are included in an annex to a draft Directive that amends two Directives (2006/48/EC and 2006/49/EC) that govern banks and other credit institutions, with the aim of tightening their regulation and supervision, in the light of the recent global financial crisis.