Bankers favour fixed pay over bigger scope for bonuses
Financial firms wary of public backlash as economy wilts
Regulators say bonus cap has made sector less able to curb costs
EU response to scrapping restrictions remains unclear

LONDON, Aug 23 Reuters Banks in Britain may be free to award even bigger bonuses from January but new pay perks are unlikely to help the country39;s financial industry outshine its rivals because top bankers are wary of swapping handsome fixed salaries for uncertain rewards.

Scrapping the near decadeold cap on bonuses is a core plank of Britain39;s postBrexit easing of rules the European Union adopted to stop excessive risktaking after taxpayers had to bail out banks in the global financial crisis.

The outcome of a Bank of England and Financial Conduct Authority consultation on the proposal to remove curbs on bonuses is due in coming weeks. It would apply to payouts earned over 2024, though bringing forward the start to cover bonuses for 2023 is an option.

Ministers and regulators hope this will attract more toplevel bankers to Britain, and bolster London39;s appeal as an international capital hub as it competes with New York, Singapore, and EU financial centres such as Paris and Frankfurt.

Bankers, lawyers and remuneration consultants say, however, highflyers may lose more than they stand to gain.

Removing the cap isn39;t going to attract more top bankers to the UK because their pay will be more uncertain, Luke Hildyard, director at…