The cap limiting bankers’ bonuses to 200 per cent of annual salary has been scrapped by chancellor Kwasi Kwarteng in his mini-budget.
The EU-wide cap was imposed in 2014 to discourage the type of profit-chasing that some critics said triggered the financial crash of 2008.
It limited annual bonuses to 100 per cent of salary – or 200 per cent if shareholders approved – in order to give less of an incentive for risk-taking.
