Scrapping Banker Bonus Cap Raises Concerns of Risky Behavior and 'Greed is Good' Culture
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Removing the cap on bankers' bonuses, in place since 2014, may bring back a "greed is good" culture warns TUC.
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Banks argue scrapping the cap will attract top talent and improve mobility, but there are concerns it may spur risky behavior.
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Recruiters expect a gradual return to bigger bonuses over 2023-2025, rather than an immediate spike.
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Bank staff may push back on shifting from higher basic salaries to lower salaries plus bonuses.
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In bad years with lower bonuses, banks may face disputes over fairness of remuneration between staff.