A proposed European Union cap on managers’ bonuses is likely to hit U.S.-based staff at institutional asset managers, experts say, regardless of whether those managers have E.U. arms.
Salaries at asset managers may be subject to greater scrutiny, with compensation deferred over longer periods and fiercer competition for jobs, as E.U. asset manager staff flee to the U.S. and U.S. managers are pressured to ensure parity between their U.S. and E.U. pay practices…
The rules are not yet confirmed, and serve a starting point for future negotiations. The legislative package is expected to pass through European Parliament in mid-April. But uncertainty for the future concerns many, particularly considering this latest move was unpredicted. “This is just mean spirited. This is just pitchfork and flares,” says Alan Johnson, managing director of compensation specialist Johnson Associates. “If they’re willing to do this, what’s next?”
March 26, 2013