The European Parliament wants to put a stop to a culture of excessive bonuses and other risky practices within the financial sector. It is working on a plan that will set a ceiling on manager bonuses provided that 66% of a company's shareholders approve.
A regimen of financial sanctions is being considered. The new rules could shut down a company or suspend a person's ability to work in the sector. At the beginning of the crisis and first signs of an ailing bank sector, there was an excess of risky practices combined with bad management that ended up getting big compensation packages despite all the damage that they caused their firms. The decision to reduce bonuses and increase rules to punish bad management will help to build a transparent and responsible banking system.
