On 20 June 2013, the European Council adopted new rules limiting bank bonuses to twice annual salary as part of its amendment to its CRD IV legislation (Capital Requirements Directive) on bank capital requirements designed to enshrine international Basel III rules into EU law.
The official press release summarised the new rules as follows:
Bonuses will be capped at a ratio of 1:1 fixed to variable remuneration, i.e. no greater than equal to fixed salary. This ratio can be raised to a maximum of 2:1, if a quorum of shareholders representing 50% of shares participates in the vote and a 66% majority of them supports the measure. If the quorum cannot be reached, the measure can also be approved if it is supported by…