On the G20 meeting in September, standards were effectuated to confine bank payment to a minimum. Several countries however, such as Britain, Switzerland and the US, disagreed with the harsh measures on bonus restriction. Thanks to tough lobbying of these countries’ bankers, there will be no obliged cap on bonuses and the bank compensation constraint will be confined to the biggest banks and insurance companies.
This implies a great victory for Swiss bankers, as the financial industry in Switzerland is very important and the country risked competitive disadvantage by excluding bank bonuses. Nevertheless, the Swiss regulator said that these bonus payments “must actually have been earned by the company over the long term” instead of being based on reckless risks, an argumentation that is followed by other G20 members. The new strategy becomes operative on January 1.
New York Times
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