Author: Mirit Ehrenstein

Bonus cap removed as of 31 October

The bonus cap will be removed for UK CRD V regulated firms from 31 October 2023. This means that UK firms which currently must limit variable remuneration to 100% (or 200% with shareholder approval) of fixed pay will be permitted to pay bonuses at a higher level.

 In this briefing we discuss the issues firms should consider when looking at removing the bonus cap and setting a new fixed:variable pay ratio.