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Barclays has change into the primary British financial institution to inform workers it would scrap the bonus cap imposed by the EU, following the UK’s post-Brexit determination to take away the bounds final 12 months.
The lender follows the UK operations of JPMorgan and Goldman Sachs in telling workers it would elevate bonuses. Morgan Stanley’s UK enterprise has advised regulators it intends to take action.
Barclays will use the mannequin employed by JPMorgan in setting bonuses for its most senior workers, so-called materials threat takers, at 10 occasions their mounted pay, whereas maintaining base pay the identical, in accordance with an inner memo seen by the Monetary Instances.
Beneath EU guidelines, the utmost bonus was set at two occasions wage.
The financial institution mentioned the change would “permit us higher flexibility to distinguish particular person bonuses inside a small and outlined group of colleagues, enabling Barclays to proceed to compete successfully to retain and entice one of the best expertise globally”.
It is a growing story
