Because they\’re being told they must take on more risk:
A criminal offence for running a bank in a “reckless manner”
And risks do tend to be compensated for in pay packets.
Up to 10-year deferrals of bonuses
The cancellation of all bonuses for managers if a bank “requires direct taxpayer support”
In addition, executives will face having an increased proportion of any bonus shifted from share-based payments into so-called “bail-in bonds” that would be expected to bear the first losses should their bank get into trouble.
So there is no appreciation of the bonus from the organisation doing well but there are potential losses if it does badly. Those bonuses are therefore worth a lot less than they currently are. Either bonuses themselves will get larger or there will be more migration from bonuses to base pay.
Not sure the results here are going to be quite what some people hope they will be.