London argues the EU's bonus rules would drive away talent and restrict growth in the financial sector.
The UK argued the EU bonus rules would drive away talent and restrict growth in the financial sector.
MEPs want the tougher version eventually to apply to hedge funds and investment managers, who are subject to existing bonus rules designed for banks.
This means the bonus rules will probably apply to subsidiaries of Barclays and Deutsche Bank in the US, Standard Chartered bankers working in Asia and Goldman Sachs traders based in London.
The package also included separate bonus depreciation rules that will benefit larger businesses, he said.
The so-called bonus depreciation rules are available under Section 168(k) of the IRS code, and typically apply to qualified property with no limits.
FORBES: Depreciation Rules, Investment Swings And Rescheduled Economic Growth
The bill also includes a one-year extension of current "bonus" depreciation rules, which allow businesses to deduct up to 50% of the cost of a wide variety of property and equipment, excluding real estate.
As the Bank of France pointed out, the bonus plan complies with rules introduced in February at the behest of Christine Lagarde, the finance minister, to ensure that the structure of bankers' compensation does not encourage excessive risk-taking.
The group, which includes U.S. Cardinal Sean O'Malley from Boston, will examine ways to revise the Vatican constitution, Pastor Bonus, which sets the rules for running the Roman Curia, or church hierarchy.
The generous bonus depreciation and small business deduction rules begin to drastically phase out in January 2012, which will likely cause a dramatic reversal in investment and other indicators.
FORBES: Depreciation Rules, Investment Swings And Rescheduled Economic Growth
The new rules will cap a minority bonus at 10 percent, meaning the company's bid would be lowered by 10 percent to determine which bidder gets the contract.
The new rules shouldn't affect a 2004 bonus paid in 2005--assuming, that is, it's part of a grandfathered plan that doesn't run afoul of tricky grandfathering rules.
"The noncontract bonus rule and its enforcement are not new, " said Greg Aiello, an NFL spokesman, referring to league rules prohibiting rewards for injuring opponents.
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