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Additionally, since most of these loans are fixed, paying them down can be difficult for start-ups and seasonal businesses.
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DealBook » Limits on Bonuses in Europe May Weaken | Bloomberg News reports: "Banker bonuses would be allowed to be as much as five times fixed pay under compromise European Union proposals that clash with tougher demands from E.U.
"These latest EU rules on bonuses, rushed through without any assessment of their impact, will undermine all of this by pushing bankers' fixed pay up rather than down, which will make banks themselves riskier rather than safer".
To get your nature fix, pay a visit to Los Haitises National Park, a protected virgin forest informally known as Caño Hondo.
Most are paying their staff "role-based allowances", de facto bonuses disguised as fixed pay.
The new payments are counted as fixed pay, which means banks can, with shareholder approval, pay bonuses of 200% of bankers' collective basic pay and fixed pay allowances.
A 2009 agreement to increase some senior staff members' fixed pay was, like moves by many rivals, a somewhat slippery response to political pressure over bonuses.
That is troublesome because it is easy to "claw back" bonuses, which are typically deferred for several years, but there is currently no way to reclaim fixed pay.
Osborne and officials at the Bank of England have warned that bankers' fixed pay will rise to compensate for the lower bonus potential.
Banks have turned to awarding fixed pay allowances after the EU ruled to cap bonuses to 200% of salary, even if shareholders wanted to approve higher payments.
This year, it also said it would pay deferred stock bonuses to some senior executives, while increasing the fixed pay for some of its traders to persuade them not to jump to competitors.
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