ECB hits out at bank bonuses

Several eurozone banks are falling short of the European Central Bank’s expectations by paying bonuses in cash, which fosters a short-sighted approach to management, the ECB’s top supervisor Andrea Enria has told a conference in Dublin.

Speaking at a Federation of International Banks in Ireland conference, Mr Enria, chair of the European Banking Authority, said rules put in place after the financial crisis a decade ago — such as bonus caps, clawback arrangements, and how much compensation is paid in cash — had supported regulators’ aims of ensuring banks align schemes with prudent risk-taking.