City bonuses 'to be halved' amid the growing protests
Thursday 10 May 2012
City bonuses will return to the "real world" this year with payouts halving to £2.3bn, their lowest level since 1998, a new report claims today.
The multimillion-pound packages that were commonplace "are now the exception, not the rule" following five years of recession and austerity, it says.
The forecasting group CEBR, which produces the "official" estimates of bonuses, says the expected total for the 2012/13 bonus "season" compares with £4.4bn previously and £11.7bn in the last of the golden years in 2007/08.
The CEBR said the demise of the bonus culture was due to a combination of subdued markets and more-forceful shareholders demanding lower rewards for executives.
There has also been a huge shift in public attitudes towards "irresponsible" rewards for bankers. Douglas McWilliams,the CEBR's chief executive, said: "City remuneration levels arecoming back into the real world. Employees are being told 'your job is your bonus, so don't expect a large sum in addition'.
"More active shareholders are pressing management to remunerate in line with the economic situation. And our estimates for City activity, reflected in the sharp fall in the number of City jobs, means that pay has to fall to reflect the underlying economic reality."
However, Mr McWilliams also points out that lower bonuses means less revenue for theTreasury at a time when it needsit most.
As well as a reduced headline total, there has also been a shift away from instant cash payments to share-based ones that canonly be accessed after three to five years.
Emergency call 'started off dumb, but got pretty serious'
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Thought you'd seen it all after the Jeremy Paxman interview?
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
"History is violent," says the US Army tank commander Don "Wardaddy" Collier
Striker's four-month ban for biting an opponent expires on Friday
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
- 4 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Diwali: What is the festival of lights – and how is it celebrated around the world?
Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...
£100 - 125k: Guru Careers: A CTO / Chief Technology Officer is needed to join ...