Why Kwarteng S Focus On Bankers Bonuses Is A Strange Race Nils Pratley
But here’s the thing: for the sheer logic of the matter, the chancellor has a point. The design of the European Union’s bonus cap has always been clumsy and there is no evidence that it has reduced banks’ risk-taking, which should have been the aim. The problem, as reiterated here at the time, is that the “waterbed principle” applies: push down on one pay sector and another goes up. The cap, crucially, placed no limits on how much a bank could pay an individual....