Overview

• 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.