Morgan Stanley announced on Monday that it will lift the cap on bonuses for bankers in London's financial district.
The Wall Street bank said in a regulatory file that it will replace the current cap of limiting some employees' bonuses to twice their fixed salary with an "appropriate internal bonus limit".
Morgan Stanley did not provide details on how it would adjust the compensation structure for significant risk takers, but emphasized the need to "achieve an appropriate balance between fixed and variable compensation components".
The bank said in a statement to the media that it will continue to "pay competitively and reward exceptional performance."
It is reported that the banking industry is implementing a series of new compensation structures. At JPMorgan, bankers' bonuses can reach up to 10 times their base salary, but the bank currently has no plans to substantially change fixed salaries for its UK employees. Goldman Sachs is reportedly planning to decrease fixed salaries while allowing top traders and brokers in the UK to receive bonuses of up to 25 times their base salary.