City Of London

London’s Bankers Have Little Use for Lifted Bonus Cap This Year

  • UK removes bonus cap in boon for City of London workers
  • But bonus pool likely to be hit hard this year on fewer deals
WATCH: “We’re going to get rid of it,” Kwarteng says of the cap on bonuses.Source: Bloomberg
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London’s investment bankers have long grumbled that the region’s bonus cap crimped their pay in high times. Its demise arrives in a year when few expect the change to unleash bumper payouts.

The UK government said Friday it will lift the limit on bonuses that has affected global banks for most of the last decade. While that’s welcome news in the City of London, this year’s pay among top investment bankers will be influenced far more by evaporating deal flow.