Boris Johnson today warned that an EU plan to cap bankers’ bonuses was a “threat to the fabric” of the City.
The Mayor urged Brussels not to “butt in” on the right of London’s financial institutions to set their own pay as MEPs prepared to vote on imposing a bonus limit of a year’s salary.
Mr Johnson said: “It’s a threat to the very fabric of the City of London because it’s not part of a global response and threatens to undermine London’s international competitiveness compared with New York or the emerging Asian powerhouses.”
It is understood the Mayor fears a cap could push up salaries, making it harder for banks to cut costs. However, he said banks needed to “give something back” by raising the lowest-paid workers’ wages to the London living wage of £8.55 an hour, as well as taking part in more philanthropic activities.
MEPs have been pushing hard for a cap on bonuses and the Irish presidency of the EU has made the reforms a priority for the next six months, while Germany has dropped its opposition to the plan.
