The financial regulator has increased the number of companies covered under UK bonus rules to abide by the European Union Legislation.

FSA has reexamined the compensation of nearly 4,300 executives at 27 banks in previous year, which also includes 2,800 executives who have earned more than £1m.

The firms covered under rules on bonuses and remuneration has increased from 27 large banks to 2,500 banks, building societies and hedge funds.

FSA revealed in a statement that at least 40 percent of bonuses should be deferred for not less than three years, and minimum 50 percent of the bonus should be given in the form of shares or share-linked instruments.

In case bonus is more than 500,000 pounds or $779,550, 60 percent of the bonus should be deferred.

The Financial Regulator has been auditing the executives' pay package all over the world to minimize the risk contributing to financial crises.

The new pay rules, in-effect from January 1, are applicable to those senior managers and employees, whose activities have any "material impact" on the company's risk profile.

UK will become the first country to follow European Union legislation.