Paul Kavanagh from the investment firm Killik and co. said that new plans to cap bankers' bonuses will "create a very uncompetitive environment for many banks."
Speaking to Daybreak he added: "Not all pay is irresponsible pay."
As part of a financial reform package, ministers will consider a provisional proposal pushed last week by MEPs and backed by the European Commission.
More top news
A police community support officer who engaged in sex acts with a schoolgirl after meeting her while on duty has been jailed for five years.
A rather autumnal feel for the time of year
Police have launched an investigation after a woman found a hidden camera while in the shower at a Travelodge.