A Cap on Wall Street Bonuses? Introduction It's bonus time on Wall Street. Starting on Jan. 1, caps - limiting bonuses to one year's base salary, or twice that level with shareholder approval - went into effect within the European Union. These curbs on compensation are among the toughest in the world and are designed to prevent banks from taking excessive risks, but they are not without loopholes, of course. Should regulators and lawmakers in the United States place similar caps on bankers" bonuses?