Government Shoudl Support EU Proposals To Cap Bankers Bonuses - O’Keeffe

Posted on 24/04/09 by Ned O’Keeffe The Government should support EU Commission recommendations that will cap bankers bonuses and golden parachutes, according to Fianna Fáil South Euro candidate Ned O'Keeffe TD. Deputy O'Keeffe made his remark after a leaked European Commission policy draft was circulated which is seeking to bring in tougher remuneration rules for financial institutions with an office in one of the 27 member states.

Under the draft recommendations, directors' termination payments would be limited to no more than two years of their fixed remuneration and they would also face a minimum three year vesting period for share options.

The recommendations, if approved, would also be applied to subsidiaries of EU based parents, including those in offshore tax centres.

Speaking about these proposals, Deputy O'Keeffe said, "I'm delighted to see that the EU Commission is finally taking action on regulating the banks, particular when it comes to the huge payments being made to banking executives. We've needed legislation in this area for some time and I will be urging the Irish Government to provide their full support for these initiatives."

"In fact I would go far further and set an overall cap on the level of pay that can be made to bankers. Some of the sums involved are completely obscene. They're unfair to the customers of these banks and their shareholders and investors. Given the performance of the banks and the role they have played in the international financial crisis more of these executives should be held accountable," Deputy O'Keeffe concluded.