Citi is set to remove the bonus cap for its London investment bankers following the UK government's decision to lift EU-imposed pay restrictions last year, according to a report in The Sunday Times.
This decision follows similar actions by other major banks, including Barclays, JP Morgan, and Goldman Sachs, which have already scrapped the cap.
Introduced in 2014, the cap limited bonuses to one times the salary, or double with shareholder approval, primarily affecting bankers in risk-taking roles.
While the cap was intended to curb excessive risk-taking and control pay, it led to unintended consequences, such as increased fixed salaries.
The removal of the limit is seen as a way to make London more competitive in the global financial market, particularly compared to New York.
Shareholders of various banks have approved the end of the cap, with Goldman Sachs and JP Morgan now allowing bonuses up to ten times the salary.