Osborne fails in challenge to overturn EU bonus cap

The UK's challenge to overthrow banking bonus cap plans has been rejected by the EU Court of Justice.

The ruling is a blow to Chancellor George Osborne who wished to overturn the EU's plans to limit bonuses to 100% of salary or 200% with shareholder approval, viewing it as illegal. Niilo Jääskinen, advocate of the ECJ, said he believed the EU legislation was valid although a final ruling is not expected until next year. He said: "Fixing the ratio of variable remuneration to basic salaries does not equate to a 'cap on banker bonuses' or fixing the level of pay because there is no limit imposed on basic salaries that the bonuses are pegged against." The cap on bonuses is intended to ...