CRACKING DOWN

Europe vs. Bonuses

Rulers of the universe are uniting in their efforts to take on Masters of the Universe. In advance of a meeting of G-20 finance ministers this weekend, leaders of the U.K., Germany, and France have devised a plan to curb bank bonuses and are putting pressure on the U.S. to join their front. In a letter, the heads of state laid out three broad principles regarding payment that they want to become binding rules for financial institutions at the larger G-20 summit in Pittsburgh this month. Bonuses should be “kept at an appropriate level in relation to the fixed remuneration and must depend on the performance of the bank, the business unit, and the individuals,” the letter reads. In addition, “guaranteed bonuses are to be avoided," companies should develop pay policies, and banks should be more transparent. The letter also spells out that businesses that don't comply should be sanctioned.