Bonuses limit

U.K.'s five largest banks (HSBC,Barclays,Lloyd,Royal Bank of Scotland and Standard Chartered) agreed to set a bonuses limit. the issue came up after the G20 congress. The U.K. government decision made by the Prime minister in his Party's annual conference will affect the salaries of banks' top earners.
The decison has also been made due to the government's role in the british financial system, owning 70% of RBS and 43% of Lloyds. the Financial Services Authority (FSA) as well announced new regulation In August in relation to compensation restrictions.
the new restrictions will take effect next year. Banks will have to declare by an independent commitee full compensation reports to the FSA. Moreover, senior executives and employees that manage risk must defer 40% to 60% of compensation over 3 years, and at least 50% will have to be in shares. In addition, poor performance will be affecting the bonuses of these people. Banks are also asked to comply with these regulations, in fact failing in respecting the rules will be subject to additional capital requirements.
British banks have raised their concerns in regard. The concerns were based on the fact that foreign banks based in the U.K. might have competitve advantages over them. U.K. authorities assured that new reules will aplly also to foreign owned subsidaries. Furthermore, the FSA added that they will try to work with other nation's banking regulators to make sure that other countries will apply this type regulations.

REFERENCES:
-The Wall Street journal