Business · Companies · 3 hrs ago
CaixaBank urges EU to review limits on bank executives’ bonuses
CaixaBank has asked the European Union to review limits on bank bonuses as part of a public consultation on banking competitiveness.
The rules generally cap variable pay at 100% of fixed salary, though shareholders can approve a rise to 200% under conditions that include regulatory approval.
The limits apply to bank staff considered able to take significant risks, and rules also delay some bonus payments and require part to be paid in shares.
CaixaBank says the rules make it harder to attract skilled workers, especially in investment banking and private equity, where bonuses have often exceeded salaries.
The bank says this puts European firms at a disadvantage when competing with places such as the United States, while the United Kingdom removed its limits after Brexit.
The European Commission is considering possible changes as it prepares a major banking reform for 2027, but it has not said whether it will remove or ease the bonus caps.
CaixaBank has urged the European Commission to review limits on variable pay for bank executives, arguing that they make it harder for European banks to attract and retain skilled staff.
The bank made the proposal in a public consultation ahead of a major EU banking reform planned for 2027.
EU rules generally cap variable pay at 100% of fixed salary, though shareholders can approve an increase to 200% in some cases.
The rules also require some bonuses to be deferred and at least half to be paid in capital instruments such as shares.
The Commission has acknowledged concerns about banks’ ability to compete for global talent but has not said whether it will remove or relax the limits.
- Who
- CaixaBank, led by Gonzalo Gortázar, made the proposal to the European Commission.
- What
- It called for a review of the framework governing bank executives’ variable pay.
- When
- The proposal was made in a public consultation reported on 18 October 2026. The consultation is ahead of a banking reform planned for 2027.
- Where
- The proposal was submitted to the European Commission in Brussels.
- Why
- CaixaBank says the rules make it harder for European banks to attract and retain qualified professionals in a global talent market.
This story does not have two clearly opposing sides.
The European Commission published its report on the competitiveness of the banking sector.
The Commission opened a public consultation on banking competitiveness, and CaixaBank submitted its proposal.
A major reform of EU banking rules is planned.
- Variable-pay cap
- 100% of fixed salary under the Capital Requirements Directive
- Possible higher cap
- Up to 200% of fixed salary with shareholder approval in some cases
- Bonus deferral
- 40% to 60% over four to five years
- Bonus payment in capital
- At least 50% of the total amount
- Talent threshold cited
- Annual total remuneration of €750,000 or more is one quantitative criterion for identifying staff who may take significant risks
What people are saying
Europe needs banks that can compete internationally in their ability to attract and retain qualified professionals.
The competitiveness of the EU banking sector is not only a matter of prudential considerations, technology and innovation. It also depends on banks’ ability to attract, retain and reward highly qualified professionals in a global talent market.