Bonus caps

Welcome to Allen & Overy’s Employment Talk blog, sharing with you our views and insights into the latest trends, risks and developments in financial sector pay regulation, including malus and clawback and CRDIV developments.

Financial sector pay reform: looking ahead

David Cummings

Pay regulation is a moving target – one thing gets crossed off your “to do” list but there are typically several more “to do’s” around the corner. It is the same story this year. Firms may be relieved to have 2016 arrangements in place (which for many PRA firms incorporate stricter deferral, vesting and Read More

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Banking pay reform: what’s coming up?

Felicity Gemson

Pay regulation was a recurrent theme in last week’s headlines. The Government announced that it is dropping its legal challenge to CRD IV bonus cap rules, confirming what most firms had expected – that the bonus cap is a reality. The Government’s chances of success before the ECJ had plummeted after the Advocate General resoundingly dismissed Read More

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Bonus caps: A view from the Netherlands

Floris van de Bult

The last two weeks have been exciting for bankers in the Netherlands. The bill cutting their bonuses to 20% of fixed pay was passed by the Dutch Lower House. Two days later, most fixed pay allowances, introduced by banks to mitigate the negative consequences of the CRDIV 100% bonus cap, were qualified by the European Read More

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