Barclays becomes first UK bank to scrap EU bonus cap

finance
Created 8/8/2024
Updated 8/8/2024

Barclays has become the first UK bank to eliminate the EU-imposed bonus cap for its top earners, known as "material risk takers." This move allows eligible staff to receive bonuses up to 10 times their fixed pay, a significant increase from the previous cap of twice the base salary. The decision follows the UK's post-Brexit removal of the cap, aiming to boost London's financial sector. This shift is expected to intensify competition for talent among major banks in London, while some European banks, still restricted by EU rules, express concerns about their ability to compete.

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