Martin Wheatley, the top U.K. markets regulator, criticized a European Union cap on banker bonuses as the bloc’s banking watchdog prepares to expand the limits to thousands more financial-industry employees.
Across the Standard & Poor’s 500 Index of companies, the average multiple of CEO compensation to that of rank-and-file workers is 204, up 20 percent since 2009, according to data compiled by Bloomberg. The numbers are based on industry-specific estimates for worker compensation.
European rules aimed at making insurers safer may cost the industry as much as 200 million pounds ($310 million) a year in the U.K., said Andrew Bailey, the country’s top banking and insurance supervisor.
Barclays Plc, the U.K.’s second- largest lender by assets, paid investment bankers bonuses “incapable of justification” as employees focused on revenue at the expense of clients, according to an internal report.
Barclays Plc, JPMorgan Chase & Co. and other banks will be exempt from Dodd-Frank Act swap market rules when trading between their own affiliates under a measure completed by the U.S. Commodity Futures Trading Commission.
Banks can improve their financial strength and still lend, Andrew Bailey, head of prudential regulation at the U.K.’s Financial Services Authority, said in an opinion piece published in the Sunday Times.