LONDON—The U.K. is considering a plan to allow banks to pay bigger bonuses to their star traders and bankers, the latest salvo in an intensifying competition between London and other financial hubs about where to trade and invest money.
Since 2014, U.K. banks have been subject to European Union rules that restrict banks from paying bonuses of more than twice an employee’s salary. For bankers earning $500,000, that means they can get no more than a $1 million bonus.
