BONUS CAP. Employers in Denmark claim that a cap on CEOs bonuses is an attack on the Nordic collective bargaining model. The simple response to that is that you can’t compare apples with pears.

To say that CEOs bonuses are part of the Nordic model is just not true. A CEO wage, including bonuses, is not, and has never been, bargained through the collective agreement. It is suggested by the corporation, and often approved by the shareholders.

There is no reason to believe that this is a sneaky way for the EU to interfere in future wage settings for employees, as some employers have used as an argument to stop the cap.

High bonuses led to excessive risk taking that was a part of the reason behind the financial crisis. Also, in a situation where bank employees lose their jobs every day it is simply not moral to pay high bonuses to management.

A bonus cap is thereby a means to create a more sustainable sector, and to maintain a trustful relationship between management and employees.