George Gillen’s Post

Citigroup is increasing the bonus for UK bankers by removing limit on bonuses, joining Goldman Sachs, JP Morgan & Morgan Stanley to increase bonuses for UK bankers. European Union (EU) had imposed a limit on variable pay capped at 2x of fixed pay for material-risk takers in 2014. Read - https://lnkd.in/eSwAT5Sx follow Caproasia | Driving the future of Asia Citigroup is increasing the bonus for UK bankers by removing limit on bonuses, joining Goldman Sachs, JP Morgan & Morgan Stanley to increase bonuses for UK bankers. European Union (EU) had imposed a limit on variable pay capped at 2x of fixed pay for material-risk takers in 2014.  In 2024 July, Morgan Stanley announced to increase bonus for UK bankers currently at 2x limit on fixed pay under the European Union rules.  In late June 2024, JP Morgan announced to increase the variable bonus limit on UK staff from 2x of fixed pay to 10x of fixed pay after Brexit, with a JP Morgan banker with $1 million fixed pay can now earn $10 million in bonus instead of only $2 million in bonus under the European Union rules (no longer applies after Brexit).  In 2024 May, Goldman Sachs had increased variable bonus limit on UK staff from 2x of fixed pay to 25x of fixed pay.  Citi, J.P. Morgan, Morgan Stanley, Goldman Sachs

Citigroup is increasing the bonus for UK bankers by removing limit on bonuses, joining Goldman Sachs, JP Morgan & Morgan Stanley to increase bonuses for UK bankers. European Union (EU) had imposed a limit on variable pay capped at 2x of fixed pay for material-risk takers in 2014. Read - https://lnkd.in/eDCiVeny follow Caproasia | Driving the future of Asia Citigroup is increasing the bonus for UK bankers by removing limit on bonuses, joining Goldman Sachs, JP Morgan & Morgan Stanley to increase bonuses for UK bankers. European Union (EU) had imposed a limit on variable pay capped at 2x of fixed pay for material-risk takers in 2014.  In 2024 July, Morgan Stanley announced to increase bonus for UK bankers currently at 2x limit on fixed pay under the European Union rules.  In late June 2024, JP Morgan announced to increase the variable bonus limit on UK staff from 2x of fixed pay to 10x of fixed pay after Brexit, with a JP Morgan banker with $1 million fixed pay can now earn $10 million in bonus instead of only $2 million in bonus under the European Union rules (no longer applies after Brexit).  In 2024 May, Goldman Sachs had increased variable bonus limit on UK staff from 2x of fixed pay to 25x of fixed pay.  Citi, J.P. Morgan, Morgan Stanley, Goldman Sachs

Goldman Sachs removes bankers' bonus limit The investment bank Goldman Sachs has become the first to remove its cap on bankers' bonuses following changes to UK laws introduced last year. The bank said this would give "greater flexibility" and was closer to what happens in other big financial centres such as Singapore and New York. Bonuses were limited to twice basic pay in a move introduced by the EU in 2014. Other big banks are thought to be considering a similar moves. The limit on bankers' bonuses was introduced by the EU in 2014 despite British opposition, to try to discourage the kind of excessive risk-taking that contributed to the 2008 great financial crisis. Critics argued that banks were able to get round it by simply increasing base salaries. This then made it harder to reduce salaries when bankers performed badly, or claw back pay if misconduct came to light. When it brought in the changes, the Financial Conduct Authority said the change should remove these "unintended consequences". The decision was first announced by Kwasi Kwarteng during his brief stint as chancellor in 2022, in a bid to boost the competitiveness of London as a financial centre. Banks have argued that the bonus cap makes it harder to attract talent from the US and Asia to the UK. Goldman Sachs said in a statement: "This approach gives us greater flexibility to manage fixed costs through the cycle and pay for performance. It brings the UK closer to the practice in other global financial centres, to support the UK as an attractive venue for talent." A number of other banks have reportedly been reviewing their pay policies in the light of the changes. When the decision to remove the bonus cap was announced last year, the Trades Union Congress general secretary Paul Nowak called it an "insult to working people" when "millions up and down the country are struggling to make ends meet." The change will not be universally welcomed by bankers, some of whom prefer to receive more of their income as guaranteed basic pay rather than bonuses which depend on their performance. News credit BBC News #news #technews #dailynews #viralnews #fintech #finance

Citi has lifted the bonus limits for its top UK bankers and traders, aligning with similar moves by competitors like J.P. Morgan and Barclays. Under the revised policy, key employees, known as "material risk takers," can now receive bonuses up to six times their base salary, a significant increase from the previous cap of twice their fixed pay. This change follows the UK's removal of the EU-imposed bonus cap, part of efforts to bolster London’s status as a global financial hub post-Brexit. Unlike some of its competitors, Citi will not substantially increase base salaries but will reduce its reliance on role-based allowances, which were previously used to circumvent bonus caps. The bank's decision reflects a strategic adjustment to remain competitive in the evolving financial landscape, ensuring it can attract and retain top talent. Overall, Citi believes these changes will reinforce its performance-driven compensation model while adapting to the new regulatory environment. The move highlights a broader industry trend of financial institutions reviewing their pay structures to maintain a competitive edge in a rapidly changing market.

Morgan Stanley to increase bonus for UK bankers currently at 2x limit on fixed pay under the European Union rules.  In late June 2024, JP Morgan announced to increase the variable bonus limit on UK staff from 2x of fixed pay to 10x of fixed pay after Brexit, with a JP Morgan banker with $1 million fixed pay can now earn $10 million in bonus. In 2024 May, Goldman Sachs had increased variable bonus limit on UK staff from 2x of fixed pay to 25x of fixed pay.   Read - https://lnkd.in/g8UDw36U follow Caproasia | Driving the future of Asia Morgan Stanley has announced to increase bonus for UK bankers currently at 2x limit on fixed pay under the European Union rules.  In late June 2024, JP Morgan announced to increase the variable bonus limit on UK staff from 2x of fixed pay to 10x of fixed pay after Brexit, with a JP Morgan banker with $1 million fixed pay can now earn $10 million in bonus instead of only $2 million in bonus under the European Union rules (no longer applies after Brexit).  European Union (EU) had imposed a limit on variable pay capped at 2x of fixed pay for material-risk takers in 2014. In 2024 May, Goldman Sachs had increased variable bonus limit on UK staff from 2x of fixed pay to 25x of fixed pay.  Morgan Stanley, J.P. Morgan, Goldman Sachs

Academics question the logic behind higher pay for talent retention, as further pay votes are set for AGMs later this month. HSBC’s decision to scrap a cap on bankers’ bonuses at last week’s AGM could open the floodgates for rising executive pay, further aggravating investor concerns around fair pay. The vote to remove the cap received 99.3% shareholder support, allowing the bank to set a new limit for bonus and significantly increase payouts. HSBC paid its top investment bankers an estimated average bonus of US$771,700 last year, while median employee pay at the bank sits at £63,000 (US$79,000). “It’s reflective of the general direction of travel with senior management pay in the UK,” Lindsey Stewart, Director of Investment Stewardship Research at Morningstar, told ESG Investor. “There’s a conviction, certainly among companies, boards and management, that higher pay has to be part of the equation for talent attraction and retention.” Before the meeting, Stewart suggested the vote would “likely become a focal point for the UK’s conversation on executive pay”. Overall trend Under the previous legal cap, an employee’s bonus could not exceed 100% of their annual pay, or 200% with shareholder approval. These limits were scrapped from 31 October 2023 by then-Chancellor Kwasi Kwarteng’s mini budget. Similar votes are due to take place at Barclays’ AGM on 9 May and Lloyds’ on 16 May. Beyond the UK, proxy advisor Glass Lewis has urged Morgan Stanley shareholders to vote against an executive pay proposal at its AGM on 23 May. “The overall trend is going to be preserved,” said Stewart. “With HSBC is having approved this, it’s unlikely that we’ll see a rejection of those decisions at Lloyds or Barclays.” Last week, Goldman Sachs removed its bonus cap for UK bankers, meaning they can now earn more than the previous limit of double their base pay. The decision was criticised by British trade unions. The median pay for S&P 500 chief executives rose 9% to US$15.7 million in the year to April 15, increasing the gap between top management salaries in the US and UK. UK executives have complained they are underpaid compared to US peers, with several warning of a talent exodus without more competitive pay. Last year, London Stock Exchange CEO Julia Hoggett warned that higher pay salaries were needed in the upper reaches of UK firms to retain listings and secure talent. “The incentive point is at the core of it,” Stewart explained. “There has been some concern among company management on whether the pay quantum and structure in the UK is sufficient for them to compete in a mobile international market for talent. “It complicates the landscape for UK asset owners that have for some time been concerned about the growing gap between the pay of senior executives – particularly CEOs – and the wider workforce.” However, a letter sent to the Financial Times earlier this week argued that UK executive pay level

Academics question the logic behind higher pay for talent retention, as further pay votes are set for AGMs later this month. HSBC’s decision to scrap a cap on bankers’ bonuses at last week’s AGM could open the floodgates for rising executive pay, further aggravating investor concerns around fair pay. The vote to remove the cap received 99.3% shareholder support, allowing the bank to set a new limit for bonus and significantly increase payouts. HSBC paid its top investment bankers an estimated average bonus of US$771,700 last year, while median employee pay at the bank sits at £63,000 (US$79,000). “It’s reflective of the general direction of travel with senior management pay in the UK,” Lindsey Stewart, Director of Investment Stewardship Research at Morningstar, told ESG Investor. “There’s a conviction, certainly among companies, boards and management, that higher pay has to be part of the equation for talent attraction and retention.” Before the meeting, Stewart suggested the vote would “likely become a focal point for the UK’s conversation on executive pay”. Overall trend Under the previous legal cap, an employee’s bonus could not exceed 100% of their annual pay, or 200% with shareholder approval. These limits were scrapped from 31 October 2023 by then-Chancellor Kwasi Kwarteng’s mini budget. Similar votes are due to take place at Barclays’ AGM on 9 May and Lloyds’ on 16 May. Beyond the UK, proxy advisor Glass Lewis has urged Morgan Stanley shareholders to vote against an executive pay proposal at its AGM on 23 May. “The overall trend is going to be preserved,” said Stewart. “With HSBC is having approved this, it’s unlikely that we’ll see a rejection of those decisions at Lloyds or Barclays.” Last week, Goldman Sachs removed its bonus cap for UK bankers, meaning they can now earn more than the previous limit of double their base pay. The decision was criticised by British trade unions. The median pay for S&P 500 chief executives rose 9% to US$15.7 million in the year to April 15, increasing the gap between top management salaries in the US and UK. UK executives have complained they are underpaid compared to US peers, with several warning of a talent exodus without more competitive pay. Last year, London Stock Exchange CEO Julia Hoggett warned that higher pay salaries were needed in the upper reaches of UK firms to retain listings and secure talent. “The incentive point is at the core of it,” Stewart explained. “There has been some concern among company management on whether the pay quantum and structure in the UK is sufficient for them to compete in a mobile international market for talent. “It complicates the landscape for UK asset owners that have for some time been concerned about the growing gap between the pay of senior executives – particularly CEOs – and the wider workforce.” However, a letter sent to the Financial Times earlier this week argued that UK executive pay level

Academics question the logic behind higher pay for talent retention, as further pay votes are set for AGMs later this month. HSBC’s decision to scrap a cap on bankers’ bonuses at last week’s AGM could open the floodgates for rising executive pay, further aggravating investor concerns around fair pay. The vote to remove the cap received 99.3% shareholder support, allowing the bank to set a new limit for bonus and significantly increase payouts. HSBC paid its top investment bankers an estimated average bonus of US$771,700 last year, while median employee pay at the bank sits at £63,000 (US$79,000). “It’s reflective of the general direction of travel with senior management pay in the UK,” Lindsey Stewart, Director of Investment Stewardship Research at Morningstar, told ESG Investor. “There’s a conviction, certainly among companies, boards and management, that higher pay has to be part of the equation for talent attraction and retention.” Before the meeting, Stewart suggested the vote would “likely become a focal point for the UK’s conversation on executive pay”. Overall trend Under the previous legal cap, an employee’s bonus could not exceed 100% of their annual pay, or 200% with shareholder approval. These limits were scrapped from 31 October 2023 by then-Chancellor Kwasi Kwarteng’s mini budget. Similar votes are due to take place at Barclays’ AGM on 9 May and Lloyds’ on 16 May. Beyond the UK, proxy advisor Glass Lewis has urged Morgan Stanley shareholders to vote against an executive pay proposal at its AGM on 23 May. “The overall trend is going to be preserved,” said Stewart. “With HSBC is having approved this, it’s unlikely that we’ll see a rejection of those decisions at Lloyds or Barclays.” Last week, Goldman Sachs removed its bonus cap for UK bankers, meaning they can now earn more than the previous limit of double their base pay. The decision was criticised by British trade unions. The median pay for S&P 500 chief executives rose 9% to US$15.7 million in the year to April 15, increasing the gap between top management salaries in the US and UK. UK executives have complained they are underpaid compared to US peers, with several warning of a talent exodus without more competitive pay. Last year, London Stock Exchange CEO Julia Hoggett warned that higher pay salaries were needed in the upper reaches of UK firms to retain listings and secure talent. “The incentive point is at the core of it,” Stewart explained. “There has been some concern among company management on whether the pay quantum and structure in the UK is sufficient for them to compete in a mobile international market for talent. “It complicates the landscape for UK asset owners that have for some time been concerned about the growing gap between the pay of senior executives – particularly CEOs – and the wider workforce.” However, a letter sent to the Financial Times earlier this week argued that UK executive pay level

Academics question the logic behind higher pay for talent retention, as further pay votes are set for AGMs later this month. HSBC’s decision to scrap a cap on bankers’ bonuses at last week’s AGM could open the floodgates for rising executive pay, further aggravating investor concerns around fair pay. The vote to remove the cap received 99.3% shareholder support, allowing the bank to set a new limit for bonus and significantly increase payouts. HSBC paid its top investment bankers an estimated average bonus of US$771,700 last year, while median employee pay at the bank sits at £63,000 (US$79,000). “It’s reflective of the general direction of travel with senior management pay in the UK,” Lindsey Stewart, Director of Investment Stewardship Research at Morningstar, told ESG Investor. “There’s a conviction, certainly among companies, boards and management, that higher pay has to be part of the equation for talent attraction and retention.” Before the meeting, Stewart suggested the vote would “likely become a focal point for the UK’s conversation on executive pay”. Overall trend Under the previous legal cap, an employee’s bonus could not exceed 100% of their annual pay, or 200% with shareholder approval. These limits were scrapped from 31 October 2023 by then-Chancellor Kwasi Kwarteng’s mini budget. Similar votes are due to take place at Barclays’ AGM on 9 May and Lloyds’ on 16 May. Beyond the UK, proxy advisor Glass Lewis has urged Morgan Stanley shareholders to vote against an executive pay proposal at its AGM on 23 May. “The overall trend is going to be preserved,” said Stewart. “With HSBC is having approved this, it’s unlikely that we’ll see a rejection of those decisions at Lloyds or Barclays.” Last week, Goldman Sachs removed its bonus cap for UK bankers, meaning they can now earn more than the previous limit of double their base pay. The decision was criticised by British trade unions. The median pay for S&P 500 chief executives rose 9% to US$15.7 million in the year to April 15, increasing the gap between top management salaries in the US and UK. UK executives have complained they are underpaid compared to US peers, with several warning of a talent exodus without more competitive pay. Last year, London Stock Exchange CEO Julia Hoggett warned that higher pay salaries were needed in the upper reaches of UK firms to retain listings and secure talent. “The incentive point is at the core of it,” Stewart explained. “There has been some concern among company management on whether the pay quantum and structure in the UK is sufficient for them to compete in a mobile international market for talent. “It complicates the landscape for UK asset owners that have for some time been concerned about the growing gap between the pay of senior executives – particularly CEOs – and the wider workforce.” However, a letter sent to the Financial Times earlier this week argued that UK executive pay level

Academics question the logic behind higher pay for talent retention, as further pay votes are set for AGMs later this month. HSBC’s decision to scrap a cap on bankers’ bonuses at last week’s AGM could open the floodgates for rising executive pay, further aggravating investor concerns around fair pay. The vote to remove the cap received 99.3% shareholder support, allowing the bank to set a new limit for bonus and significantly increase payouts. HSBC paid its top investment bankers an estimated average bonus of US$771,700 last year, while median employee pay at the bank sits at £63,000 (US$79,000). “It’s reflective of the general direction of travel with senior management pay in the UK,” Lindsey Stewart, Director of Investment Stewardship Research at Morningstar, told ESG Investor. “There’s a conviction, certainly among companies, boards and management, that higher pay has to be part of the equation for talent attraction and retention.” Before the meeting, Stewart suggested the vote would “likely become a focal point for the UK’s conversation on executive pay”. Overall trend Under the previous legal cap, an employee’s bonus could not exceed 100% of their annual pay, or 200% with shareholder approval. These limits were scrapped from 31 October 2023 by then-Chancellor Kwasi Kwarteng’s mini budget. Similar votes are due to take place at Barclays’ AGM on 9 May and Lloyds’ on 16 May. Beyond the UK, proxy advisor Glass Lewis has urged Morgan Stanley shareholders to vote against an executive pay proposal at its AGM on 23 May. “The overall trend is going to be preserved,” said Stewart. “With HSBC is having approved this, it’s unlikely that we’ll see a rejection of those decisions at Lloyds or Barclays.” Last week, Goldman Sachs removed its bonus cap for UK bankers, meaning they can now earn more than the previous limit of double their base pay. The decision was criticised by British trade unions. The median pay for S&P 500 chief executives rose 9% to US$15.7 million in the year to April 15, increasing the gap between top management salaries in the US and UK. UK executives have complained they are underpaid compared to US peers, with several warning of a talent exodus without more competitive pay. Last year, London Stock Exchange CEO Julia Hoggett warned that higher pay salaries were needed in the upper reaches of UK firms to retain listings and secure talent. “The incentive point is at the core of it,” Stewart explained. “There has been some concern among company management on whether the pay quantum and structure in the UK is sufficient for them to compete in a mobile international market for talent. “It complicates the landscape for UK asset owners that have for some time been concerned about the growing gap between the pay of senior executives – particularly CEOs – and the wider workforce.” However, a letter sent to the Financial Times earlier this week argued that UK executive pay level