# Bonus cap

- Canonical URL: https://www.gerhardmerk.de/bonus-cap
- Post ID: 587418
- Modified: 2023-07-25T21:00:31+00:00
- Language: en

## Definition

Generic term for all measures aimed at limiting bonus payments at banks that are perceived as unjustified. The European Union's decision in spring 2013 to limit bonuses to a maximum of twice the basic salary triggered incredulous head-shaking (wondering had-shaking). After all, if the institutions reduce bonuses and raise fixed salaries as a result of the new regulations, nothing will change. Moreover, the bonus cap is a very far-reaching intervention in wage formation, which the free-market legal system has generally reserved to the collective bargaining parties or the companies and their employees for good reasons. - See Bonus, Institute Compensation Regulations, Compensation System, Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1