Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Goldman Sachs Lifts Bonus Cap for UK Staff, Allowing Earnings up to 25 Times Annual Salary

by May 3, 2024
May 3, 2024
Goldman Sachs Lifts Bonus Cap for UK Staff, Allowing Earnings up to 25 Times Annual Salary

Goldman Sachs has announced the elimination of a bonus cap for hundreds of its top UK bankers, enabling star performers to potentially earn bonuses up to 25 times their annual salary.

Richard Gnodde, the CEO of Goldman Sachs International, revealed this change in a video message to staff, stating that it aligns with the firm’s global approach to compensation. This move follows UK regulators’ decision to formally abolish EU rules that previously restricted bonuses to twice an individual’s base salary, with other major UK lenders, including HSBC, Barclays, and NatWest, set to follow suit.

Gnodde highlighted that ending the UK cap would promote consistency across Goldman’s international workforce and provide greater flexibility in compensation practices. The adjustment allows for a higher proportion of discretionary compensation, dependent on performance, and facilitates the deferral and potential clawback of bonuses.

The revised policy will affect hundreds of Goldman’s 6,000 UK staff, known as material risk takers, enabling them to earn bonuses up to 25 times their salaries.

Gnodde emphasised that the changes align UK material risk takers’ compensation more closely with the firm’s global principles, favouring lower fixed pay but a higher share of discretionary compensation, in line with prudential objectives set by regulators.

However, this modification will not extend to Goldman’s EU-based bankers, as American regulators do not impose restrictions on maximum payouts.

The bonus cap, initially introduced after the 2007-08 financial crisis, aimed to curb a bonus culture associated with short-term profit-seeking at the expense of long-term stability. While opposed by some UK politicians and the Bank of England, it faced challenges for potentially deterring skilled bankers and prompting their migration to other financial hubs.

The decision to scrap the cap gained momentum post-Brexit, with former Chancellor Kwasi Kwarteng announcing plans in September 2022. Regulators formalised the change in November last year, marking a significant shift in UK financial compensation practices.

Goldman Sachs stated that this approach enhances flexibility in managing fixed costs and reinforces the UK’s appeal as a competitive talent destination, bringing it closer to compensation practices in other global financial centres.

Read more:
Goldman Sachs Lifts Bonus Cap for UK Staff, Allowing Earnings up to 25 Times Annual Salary

0
FacebookTwitterGoogle +Pinterest
previous post
Trainline Doubles Profit Amid Accelerating European Sales Despite Nationalisation Threat
next post
Sunak to Allow Oil and Gas Exploration at Offshore Wind Sites

You may also like

HMRC’s lower interest rate on late payments overshadows...

November 13, 2024

Mentoring is both incredibly effective and versatile, so...

October 30, 2024

London student named Fintech scholarship winner

June 26, 2024

Nine in ten businesses face recruitment struggle as...

February 7, 2025

Jaguar cuts petrol cars as it changes gear...

July 16, 2024

F28: Reviewing the new Premium Rum set for...

March 24, 2023

Secrets of Success: Paul Seabridge, CEO of Opulentia...

January 16, 2024

Enhancing Workplace Wellness: The Role of Quality Gym...

November 27, 2024

Outdated IT systems threaten UK food security and...

May 10, 2023

Interpath Advisory Faces Losses as Middleton Family Business...

April 2, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved