It has reported that more than thousands of financial bankers are to be affected with the European Union’s bonus cap getting tightened up and soon it emerged yesterday. It has claimed that any employee with the earning capacity of more than €500,000 (£420,000) annually is to be held as “materially risk taker” and this is the term associated with them. However the critics say that this cap on bonus will gradually increase the risk of investment as they will not get the bonus on being paid 100% to the salary proportionately.
Barclay bank is estimate to be the main material risk taker since its 1338 staff is estimated to be earning more than £500,000 and they are one of the suffered in the decision of tightening bonus cap in UK. This would eventually increase the potential risks among the bankers since the possibility of getting capped would increase.
One of the partners of PWC Jon Terry has confirmed this risk of working in the banking industry along with the tightening bonus cap policy to be subjected from next year. This stringent laws will gradually increase the risk among the banking industry and the sufferings simultaneously.