Seduction operation in the City of London, the famous business district of the British capital. The authorities have decided to lift the remuneration cap which blocked the bonus of bankers and other financiers at twice their fixed salary. The measure should allow the City, one of the most important financial centers in the world, to gain in competitiveness. Brexit, enacted in 2020, encouraged many bankers to leave London, particularly for Paris, relegating the City in international rankings.
This cap on variable remuneration in the finance sector was decided by the European Union in 2014 as a result of the subprime crisis. Great Britain disagreed with the measure when it was drawn up, but found itself in the minority and therefore forced to adopt it. The country is now deciding to get rid of it to mark its difference from the 27 and, above all, to realign itself with the salary practices of other global financial centers outside the European Union, starting with New York.
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Financial sector regulators across the Channel defended the removal of the cap on bonuses following a consultation. The European measure had the indirect consequence of an increase in fixed remuneration. However, variable remuneration allows companies to adjust salaries more easily: in the event of poor performance by an employee, inappropriate behavior or even in the event of a slowdown in activity, as is the case today. So much so that the removal of the ceiling on bonuses would contribute to the financial stability of the country, according to British regulators, in addition to arguments linked to competitiveness.
British public opinion does not hide its discontent. Political and union leaders have not failed to point out the gap between the bonuses of City bankers and the modest salaries in certain professions. “At a time when millions of people across the country are struggling to make ends meet, this decision is an insult to workers,” said the general secretary of a British union in a statement reported by Reuters. . A member of the Labor Party, for his part, regretted the “priorities” of the Conservative Party “at a time when families are struggling with the cost of living and mortgages are increasing”.
The UK actually narrowly escaped a recession this year, with its economy weighed down heavily by inflation. The rise in prices is also hitting the population hard, causing numerous strikes in recent months, notably the unprecedented strike by nurses in the British public health system.
