Whatever next?!
No, not self-congratulatory headwear for bankers who are paid bonuses.
These are proposals from Brussels to curb bankers’ pay.
By how much?
No more than one year’s fixed salary. Banks which want to hand out bigger awards will need to clear it with a majority of shareholders. Even then the maximum award will be twice salary. There will also be an absolute ban on upfront cash bonuses which exceed salary.
Why?
Bankers’ pay is widely deemed to have spiralled out of control. There is huge political appetite in Europe – with France and Ireland at the forefront – to clip the wings of bankers.
More... 30 SECOND GUIDE: Macro-prudential tools £17m bonus bonanza for top Barclays bosses despite string of scandals Mark Carney to help reform and 're-found' Bank of EnglandWhat does the UK think?
British banks are keen to dilute these plans, claiming the best talent could quit Europe. They also argue the rules could be counter-productive, encouraging lenders to ratchet up their fixed cash salaries, which are paid regardless of performance.
Will the UK get its way?
Unlikely, particularly after Britain has lost the support of powerhouse Germany.
What happens next?
More political wrangling. Today the European Council, European Commission and European Parliament will meet in Brussels to thrash out more details.