Goldman First Mover on Removing UK Bonus Cap
(6 May 2024 – United Kingdom) Goldman Sachs’s British outfit has moved to remove a long-standing cap on its banker’s bonuses.
The Wall Street giant had been in discussions on the issue since early 2023 and had previously rescinded fixed allowances for new senior promotions.
The move follows actions by the United Kingdom (UK) government to scrap a bonus cap that had been put in place by European Union (EU) regulators in the aftermath of the global financial crisis and will allow uncapped bonuses for “material risk takers” within the bank – employees whose actions directly affect the risk profile of the bank. Goldman has approximately 570 of these bankers based in the UK.
“This approach gives us greater flexibility to manage fixed costs through the cycle and pay for performance,” said a Goldman spokesperson. “It brings the UK closer to the practice in other global financial centres, to support the UK as an attractive venue for talent.”
Subscribe