The European Commission on Wednesday set out guidelines on the bonuses of risk-taking staff in the financial services sector in response to the global financial crisis.
The guidelines cover the structure of pay, design and implementation of remuneration policies, and the role of supervisory authorities in reviewing these policies.
According to the guidelines, financial institutions should have consistent remuneration policies on risk-taking staff and promote sound and effective risk-management.
"There have been far too many perverse incentives in place in the financial services industry," EU Internal Market Commissioner Charlie McCreevy said, adding that staff's bonuses should not encourage risky behavior for short-term gain.
McCreevy said staff's remuneration levels should continue to reflect their long-term performance.
(Xinhua News Agency April 30, 2009)
