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Barclays has become the first British bank to tell staff it will scrap the bonus cap imposed by the EU, following the UK’s post-Brexit decision to remove the limits last year.
The lender follows the UK operations of JPMorgan and Goldman Sachs in telling staff it will raise bonuses. Morgan Stanley’s UK business has told regulators it intends to do so.
Barclays will use the model employed by JPMorgan in setting bonuses for its most senior staff, so-called material risk takers, at 10 times their fixed pay, while keeping base pay the same, according to an internal memo seen by the Financial Times.
Under EU rules, the maximum bonus was set at two times salary.
The bank said the change would “allow us greater flexibility to differentiate individual bonuses within a small and defined group of colleagues, enabling Barclays to continue to compete effectively to retain and attract the best talent globally”.
This is a developing story
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