Barclays scraps cap to boost UK banker bonuses

Barclays (LSE:BARC) has lifted the cap on bankers' bonuses, which means that its ‘top bankers’ will be able to earn as much as 10 times their base salary in bonuses.

The decision, on Thursday, followed a shareholder vote and was made possible by post-Brexit regulatory changes that allowed the UK to remove an EU rule that limited the amount bankers could be paid.

Previously, under the EU rule, bankers could not be paid more than double their base salary in bonuses.

Barclays follows a number of investment banks that have already axed the cap, and, it said that the change will help it attract and retain top talent in a competitive market.

The payouts will be based on performance and market conditions, Barclays added.

US banks Goldman Sachs and JPMorgan were the first in the City of London to ditch the cap for their UK staff.

The EU brought in bonus caps in the wake of the 2008 financial crisis with the aim of preventing excessive risk-taking in the sector.