March 11, 2013 - European banks are facing a race against time to restructure their pay and bonus plans before their annual meetings, it has emerged.

According to the 'Financial Times', financiers are having to act quickly in order to make sure their systems are compliant with the new European Union (EU) bonus tax rules so they can secure shareholder approval before the end of the month.

A member of one organization's remuneration committee told the news source that "it couldn't be a more difficult time" for banks, as their plans have been thrown into disarray by the EU's decision.

"Our lawyers thought they had all the paperwork done and signed off. Now they're looking at whether they can redraft everything in time," the official stated.

As of next January, the amount a bank can award to a member of staff in their bonus will be restricted to a maximum of the equivalent of their annual salary.

Another banking boss said this change has forced their company to go "back to the drawing board".