JPMorgan Chase, Goldman Sachs, and Citigroup are lobbying European Union officials. They seek to relax the cap on banker bonuses.
The banks advocate including this change in a wider reform package. This package aims to improve the EU’s global financial market competitiveness.
This effort follows the United Kingdom’s decision to scrap similar bonus caps. Previously, these caps limited bonuses to double an employee's fixed salary.
American banks aim to align European regulations with those in the U.S. and the U.K. Compensation rules are less restrictive in those jurisdictions.
This alignment seeks to create a more level playing field for attracting and retaining talent. The Association for Financial Markets in Europe added the bonus cap issue to its list of desired reforms.