The PRA and the FCA have decided to retain their current approach not to apply the bonus cap to smaller firms, but to require them to determine an appropriate ratio between fixed and variable remuneration for their business. The bonus cap (i.e. the limit on awarding variable remuneration to 100% of fixed remuneration or 200% with shareholder approval) will continue to apply to all large and systematically important UK CRD IV firms. The PRA and the FCA disagree with the EBA on its interpretation of the proportionality principle in relation to the bonus cap; in their view, the proportionality principle extends to not applying a remuneration principle in its entirety, based on a firm's size, internal organisation and the nature, scope and complexity of its activities.