Barclays Lifts Bonus Cap for Senior Bankers as UK Regulators Remove EU Restrictions
In a recent internal memo, it has been revealed that Barclays, one of the largest banks in the UK, has lifted its cap on top bonuses for its senior bankers. According to the memo, these bankers will now be able to earn payouts of up to 10 times their base salary, a significant increase from the previous two-to-one ratio imposed by the EU in 2014 when the UK was a member.
A spokesperson for Barclays stated, “The revised bonus cap will not alter the way Barclays sets its incentive pool, which is based on overall Group performance. It will allow us greater flexibility to differentiate individual bonuses within a small and defined group of colleagues.” This decision follows similar actions taken by other banks, such as Goldman Sachs and JPMorgan, which were first reported by Sky News.
Earlier this year, Barclays shareholders voted in favor of the bank’s proposal to remove the cap at a shareholder meeting. This move was met with approval from UK regulators, who announced last October that they would be removing the bonus cap in an effort to increase the competitiveness of the country’s financial sector.
The EU initially introduced the restrictions on pay in response to the 2008 financial crisis, aiming to curb excess risk-taking at banks. However, with the removal of the cap, UK regulators are hoping to boost the performance and profitability of the country’s financial institutions.
In other news, experts are predicting a 90% chance of a rate cut this autumn, and Saatchi’s bid for the Telegraph has been rejected. On a more positive note, Disney has announced a return to profitability.
