Investing.com – JPMorgan Chase (NYSE:) is set to lift caps on bonuses for its London employees, just weeks after rival Goldman Sachs (NYSE:) did the same, Sky News reports.
Citing unnamed sources, Sky News reported on Wednesday that JPMorgan is in the process of notifying its workers of parts of the compensation package introduced after the EU variable pay cap came into effect in 2014.
Under EU rules, employees deemed to be “subject to significant risk” working in the bank’s operations within the bloc were prohibited from earning more than twice their fixed salary. However, JPMorgan has decided to increase this threshold to a multiple of 10, Sky News reports.
Wall Street’s biggest lender has also decided to retain a significant portion of the fixed employee allowances that are used to determine bonuses, Sky News reported. A source told Sky News this is desirable for employees wanting to retain income to pay monthly expenses such as a mortgage.
Sky News also reported last month that Goldman Sachs plans to raise its own bonus limit from twice the fixed salary to a multiple of 25.