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
Lottie and her dog Marley confronted a man who had taken a laptop and goods from a Lush store in Oxford.
Feeling colder with a biting, bitter windchill
A thoughtful teenager has taken Valentine's romance to a whole new level by buying 900 flowers and giving one to every girl in his school.