Investors in Barclays Plc and HSBC Holdings Plc voted overwhelmingly to scrap UK bonus caps for investment bankers and traders at their annual general meetings this month. Shareholders haven’t been hypnotized by money-mad rainmakers, nor are they falling over themselves to throw more of their share of profits at employees. Quite the opposite: They voted to claw back greater control of costs and risks by making pay more flexible and allowing more of it to be deferred for longer.

Among US banks, Goldman Sachs Group Inc. has already told staff it will be getting rid of the bonus limit in the UK, while JPMorgan Chase & Co. is reviewing its policy, according to Bloomberg News. It’s a fair bet that peers will follow suit, consigning the cap to history before long.

QOSHE - Bonus Cap Removals Give Power Back to Bank Investors - Paul J. Davies
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Bonus Cap Removals Give Power Back to Bank Investors

25 1
14.05.2024

Investors in Barclays Plc and HSBC Holdings Plc voted overwhelmingly to scrap UK bonus caps for investment bankers and traders at their annual general meetings this month. Shareholders haven’t........

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