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.
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 3 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...