Bank of England Plans to Ease Bonus Rules to Boost UK Competitiveness

Deputy Governor Sam Woods argues that reducing bonus deferrals and removing caps will attract global talent and enhance financial growth.

Sam Woods, Deputy Governor of the Bank of England, announced a proposal to reduce bonus deferral periods for senior managers from eight to five years.
The previous cap on bankers' bonuses, which limited payouts to twice the level of fixed pay, was scrapped last year to improve competitiveness.
Woods emphasized that the cap was counterproductive, leading to higher base salaries and making the UK less attractive for global firms.
The move to ease bonus regulations is part of broader efforts to make the UK's financial sector more competitive and less bureaucratic.
The proposal has sparked debate, as similar reforms were initially implemented to curb risky behavior following the 2007-09 financial crisis.