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Barclays has develop into the primary British financial institution to inform employees it’s going to scrap the bonus cap imposed by the EU, following the UK’s post-Brexit choice to take away the boundaries final 12 months.
The lender follows the UK operations of JPMorgan and Goldman Sachs in telling employees it’s going to elevate bonuses. Morgan Stanley’s UK enterprise has informed regulators it intends to take action.
Barclays will use the mannequin employed by JPMorgan in setting bonuses for its most senior employees, so-called materials threat takers, at 10 occasions their fastened pay, whereas protecting base pay the identical, based on an inside memo seen by the Monetary Occasions.
Beneath EU guidelines, the utmost bonus was set at two occasions wage.
The financial institution stated the change would “permit us larger flexibility to distinguish particular person bonuses inside a small and outlined group of colleagues, enabling Barclays to proceed to compete successfully to retain and appeal to the perfect expertise globally”.
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