Michel Barnier, the European Union financial services commissioner, wants shareholders to be given the power to determine remuneration paid to banking executives, the London-based Times reported, citing an interview.
A proposal by the European Parliament would see legislation fixing a ratio between bankers’ pay and bonuses, a plan bank executives oppose, arguing that it would tend to boost base salaries and increase fixed costs in investment banking, the Times said.
While Barnier told the Times he would pursue a compromise with the lawmakers, he said that “doing nothing is not an option,” and that the choice is between his proposal and that of the Parliament.
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