Senior bankers to get bonuses years earlier under new rules

Senior UK bankers will receive their bonuses years earlier under plans by the Bank of England to relax post-financial crisis restrictions.

- Julia Kollewe

The proposals are to reduce the bonus deferral period for some of the most senior bankers from eight years to five. Fewer senior bankers would get their bonuses after four years, in a further relaxation of the restrictions. Bankers would also be able to receive some of their bonus in the first year, instead of having to wait until the third year.

In the EU, bankers' bonuses are typically deferred for three to five years, while the US has no restrictions.

Sam Woods, the chief executive of the Bank of England's Prudential Regulation Authority (PRA), said: "These proposals on bankers' bonuses will support UK growth and competitiveness without undermining financial stability. We should not return to the very dangerous pay structures that were commonly in place before 2008, but these proposals will reduce bureaucracy and support responsible risk-taking."