Barclays latest bank to lift bonus cap

Barclays has become the latest bank to lift its cap on top bonuses in the UK.

The lender’s senior bankers will now be able to earn payouts of up to 10 times their base salary, up from a two-to-one ratio previously imposed by the EU in 2014 when the UK was a member, according to an internal memo seen by news agency Reuters.

A spokesperson for the bank said: “The revised bonus cap will not alter the way Barclays sets its incentive pool, which is based on overall Group performance.

“It will allow us greater flexibility to differentiate individual bonuses within a small and defined group of colleagues.”

Banks including Goldman Sachs and JPMorgan have already taken similar action, in moves that were first revealed by Sky News.

Barclays shareholders voted in favour of the bank’s proposal to remove the cap at a shareholder meeting earlier this year.

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The EU originally introduced the restrictions on pay in an effort to curb excess risk-taking at banks following the 2008 financial crisis.

UK regulators announced last October they would remove the bonus cap in an attempt to improve the competitiveness of the country’s financial sector.