EU looks at bail-out bank bonuses

The EU's competition commissioner, Neelie Kroes, said EU governments had been advising the European Commission on how they viewed bonus payments.

"One element we pay attention to is notably the remuneration incentive structure," she said.

The goal of these packages should be to promote "long-term profitability" at the banks that dish them out.

The debate about bonuses has reached a fever pitch this year, with many blaming huge payouts for encourage the risky lending that led to the financial meltdown.

Bonus outcry

Public anger has also been aroused by large payouts to banks and institutions that have taken huge bail-outs or that have been brought under state control, such as the Royal Bank of Scotland in the UK and AIG in the US.

The Group of 20 (G20) richest nations, who meet in Pittsburgh later this month, recently agreed to consider proposals such as deferring bonuses in order to make discourage short-term risk-taking.

G20 finance ministers meeting in London backed the idea from the UK as an alternative to a mandatory cap on bonuses sought by countries such as France.

Last month, the UK's financial watchdog, the Financial Services Authority, announced new rules to curb excessive pay.

These included deferring part of any bonus for three years to discourage short-term risk taking.