EU sets out guidelines on financial sector bonuses

Special Report:Global Financial Crisis

BRUSSELS, April 29 (Xinhua) -- 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.