Investing.com -- JPMorgan Chase (NYSE:JPM) is moving to scrap an European Union cap on bonuses for its London-based staff only weeks after a similar decision by rival Goldman Sachs (NYSE:GS), according to Sky News.
Citing unnamed sources, Sky News said on Wednesday JPMorgan was in the process of notifying its workers some parts it would maintain some parts of the compensation package unveiled after the EU's cap on variable pay came into effect in 2014.
Under the EU rules, employees deemed "material risk-takers" working in a bank's operations within the bloc were barred from earning more than twice their fixed salary. However, JPMorgan has chosen to increase that threshold to a multiple of 10, Sky News reported.
Wall Street's largest lender has also decided to keep a significant amount of workers' fixed pay allowances that are used to determine bonuses, Sky News said. A source told the Sky News that this was desirable for employees eager to maintain incomes to pay for monthly expenses like mortgages.
Last month, Sky News also reported that Goldman Sachs planned to lift its own bonus cap from twice a fixed salary to as high as a multiple of 25.