European Union leaders will call on the world's leading economies tothreaten sanctions against banks that pay huge bonuses to theirexecutives.
EU leaders are gathering Thursday seeking a unified position on this and other issues planned for the G20 meeting next week.
Adraft EU statement leaked to reporters calls for bonuses to be linkedto a company's performance, and would rescind bonuses if the deals thatgenerated the bonuses go sour in the long run.
Some economistssay the bonus culture prompted executives to take major risks forshort-term profit. Some of these deals turned to massive losses, whichthreatened the stability of the financial system. Some worriedgovernments used taxpayers' money to keep the firms from collapsing.
Franceand Germany are calling for caps, on how much bankers can be paid. TheU.S. and Britain have so far resisted that approach.
The G20 leaders are set to meet in Pittsburgh on September 24 and 25.