Bankers facing smaller bonuses in the City and on Wall Street

The news comes in the wake of a difficult year for the financial industry

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The Independent Online

Bankers in both the UK and the US will reportedly receive smaller bonuses this year.

According to the Financial Times, executives have said that workers are "fighting" over lesser cash dividends, which come in the wake of a difficult year for the financial industry.

Sources told the newspaper that bonus pools at major investment banks in the City have been affected by weaker fixed-income trading figures, as well as EU legislation that caps the level of bankers’ bonuses.

And workers on Wall Street are also set to receive less generous pay-outs.

However, since public distrust in the banks remains keen, even these concessions are still likely to be seen as too little too late.

Tom Gosling, head of PwC’s reward practice, told the Financial Times: "Bonuses in the UK banks will almost certainly be down, but the problem for the industry is that the public’s trust in banks has never really been rebuilt so, for some, any level of bonus will be too much."

Gosling added that he believed banker’s bonuses had approximately halved since the financial crash.

Goldman Sachs is predicted to pay staff around 38 per cent of revenues in salaries and bonuses, compared to more than 40 per cent before the financial crisis.

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