This chapter analyses the regulatory framework of bankers’ remuneration in the UK in response to the problems in the pre-GFC practice. It first summarises the ideological change among regulators and academics with respect to the regulation of bankers’ remuneration and concludes that maintaining financial stability and protecting the public interest are the primary objectives. The chapter then discusses the initiatives implemented by the UK banking regulators, including deferral, clawback, malus and risk-adjusted performance metrics, which are aimed at guiding banks to reform their incentive mechanisms by extending the assessment period of performance assessment and applying risk-adjusted and stability-oriented indicators. It also discusses the EU bankers’ bonus cap and the opposite stance of the UK regulators to its implementation.

This chapter concludes the key findings and arguments with respect to the practices and regulations of bankers’ remuneration in the UK and China. The reforms in the UK and China are in opposite directions. In the UK, the state needs to move forward to enhance its regulatory power over the practice of bankers’ remuneration; conversely, in China, the state should retreat from the practice and give more leeway to banks. However, influenced by the traditional institutions of the financial system, in either country, the regulation of bankers’ remuneration will not thoroughly change the allocation of power between the state and the market; nevertheless, incremental reforms can be devised to gradually improve the practice of bankers’ remuneration.