By Barbara Kollmeyer
MADRID (MarketWatch) -- The European Union is expected to get stricter on bankers' pay, with proposed regulations expected to call on banks to settle on a maximum ratio between salary and bonuses, according to a report in the Financial Times on Friday, citing persons familiar with the talks. The FT said the Committee of European Banking Supervisors has been meeting in London to agree on implementation of tougher pay rules agreed on by the EU this summer. A draft is expected to be issued within days, and rules will apply to global operations of EU banks and European units of any non-EU banks. The maximum ratio will depend on whether the national regulator of the country where the bank resides is linking pay to performance and risk. The result could cause many banks to revamp pay policies and increase fixed costs due to higher salaries. The draft document will be the basis of a one-month consultation with the banking industry. Some observers have been worried such new regulations will make the European Union uncompetitive.
