February 11, 2009

Public intolerance of the high salaries paid to executives at poorly performing banks is evident on both sides of the Atlantic. Days after President Obama resolved to cap compensation for executives at heavily bailed-out banks at $500,000, Europe's Internal Markets Commissioner said this week that bankers' pay will be more regulated in the future. The EU aims to ensure pay for performance and a remuneration structure that serves institutional rather than individual good, said Commissioner Charlie McCreevy. The Commissioner, formerly Ireland's Finance Minister, can be seen making his remarks in Dublin in this television report by the national Irish station RTE.

Meanwhile it was reported elsewhere in the Irish media that ailing Royal Bank of Scotland, which cut its Irish workforce earlier this month, will likely still pay bonuses to its executives. The layoffs were recently reported by BS&T.

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