"Ah, Hargreaves, do sit down. I'll come straight to the point; the EU bonus cap on our banking sector means we can no longer pay you the usual £3m bonus on top of your £0.5m salary. We're having to cut your bonus back to the bone, I'm afraid.
However, in order to maintain productivity incentives, we're also moving you onto a new annually appraised fixed salary. Your salary for next year will go from £0.5m to £3.2m. We'll fix it again at the end of the year for another year depending on how you've done.
I realise this will be quite a financial blow, but we must comply with regulation. That's all, Hargreaves."