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Investment banks struggle to overhaul pay months after bonus cap scrapped

Banks face tough decisions, as policymakers push for higher pay packets to retain City talent but regulators remain wary of conduct risks

City lenders are still trying to nail down new pay structures
City lenders are still trying to nail down new pay structures Photo: Chris Ratcliffe/Getty Images

Investment banks are struggling to overhaul the way they pay top bankers in the UK six months after the government lifted a long-standing bonus cap put in place to curb excessive risk-taking in the aftermath of the 2008 financial crisis.

Lawyers and compensation experts within top banks say that so-called role-based allowances remain a key sticking point as banks look to shake up their compensation structures for the first time in a decade.

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