Unions call for restraint after bankers’ bonus cap lifted

Unions are urging banks to show “restraint” and not abandon the cap on bankers’ bonuses for senior staff.

The TUC made the call after Goldman Sachs announced last week that it would be lifting the cap, which used to limit a bonus until it was abolished by the UK Government.

Under the previous cap an employee’s bonus could be no bigger than 100% of their annual pay, or 200% if there was approval from shareholders.

The TUC said banks could still voluntarily decide not to pay bonuses at a higher rate than the previous cap, adding that even with the cap in place, UK banks paid out “bumper” bonuses in 2022 and 2023.

TUC general secretary Paul Nowak said: “At a time when millions are struggling to make ends meet, it would just be plain wrong for banks to hand out even larger bonuses to those at the very top.

“I urge bank leaders today to do the right thing and show some restraint. Don’t follow the example of Goldman Sachs.

“The bankers’ bonus cap was put in place to stop the excessive risk-taking and greed we saw in the run up to the financial crisis.

“The Tories should never have abolished it.

“We cannot afford a return to the bonus culture which crashed our economy.

“If UK banks press ahead with abandoning the cap for senior staff it will be further proof of the huge disconnect between Britain’s boardrooms and hard-pressed families.”

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