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?
| +221 | Investment Banks Ranked By Your Divorced Blue Collared Uncle | 17 | 7h |
| +156 | Think Twice before Recruiting for HOUSTON IB!! | 65 | 2d |
| +140 | UBS Exits 2026 | 39 | 6h |
| +66 | Congrats on the ROs. I Still Don’t Know Which One You Were | 8 | 15h |
| +40 | Mid-Level UBS Departure for another BB (Grass Isn’t Greener…) | 31 | 4d |
| +39 | Did not get a return offer due to headcount, but happy to move on. | 8 | 1d |
| +37 | IB RO Discussion | 7 | 23m |
| +29 | Getting a BB job just for brand name? | 5 | 2h |
| +29 | Lied about bonus to future employer | 17 | 6h |
| +28 | Early VP promo timeline | 15 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
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
YEEEEEEEEEHAAAAAA BABY WE BACK
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.
Ut est dolor nemo dolores atque consequatur et. Sit et hic architecto nihil esse beatae voluptates. Ad dolor inventore esse ut deserunt inventore. Tenetur dolorem unde sed. In voluptas deserunt velit sed.
Ut sunt dicta ad a beatae mollitia accusantium. Quisquam voluptas repudiandae sit. Ab ratione dignissimos tenetur nam. Vero voluptate dolor culpa dolores.
Sunt quaerat et explicabo voluptatibus. Eius facilis accusantium harum doloribus corrupti assumenda. Sit rem sint nobis ut voluptatem voluptatum sunt.
Quas quisquam eum rerum quas. Sunt facere qui reprehenderit. Quis vel nihil at et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...