Old bonus cap was introduced after 2008 crisis and was limited to no more than double the base salary.
What are your opinions on this?
Realistically: 1. How will this affect juniors' and seniors' pay? 2. What impact will this have on the competitiveness of the investment banking industry in London?
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Can't imagine it affecting anyone's pay below VP/ MD level. Whole aim of it is to 'boost competitiveness' and promote productivity in the City, breaking free of the supposed EU regulations (I don't know how accurate it is about the EU being strict on banker pay and bonuses), but that's the political motive. Very unpopular move even for some in the Conservative party, Cameron-Osborne government avoided removing a cap as did Boris Johnson since at a time of energy price crises and cost of living pressures, the move for some is seen as the Tories neglecting the working class.
I think the cap is only going to impact traders. The IB team will have no repercussions comp wise
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This is a move to try to prevent banks relocating to continental Europe. With the constant idiotic moves Brexiteers are pulling, its obvious that the EU will eventually stop being patient and a hardliner negotiator will emerge on the EU side.
By rewarding bankers much more heavily than if the moved, the UK is essentially trying to get the workers themselves to resist the move. Something which has only happened up until now among the older MDs that have raised their kids in London and won’t move.
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