Bankers expect 44% rise in bonuses

City bankers are expecting their bonuses to rise by a whopping 44%, according to new research.

The average bonus for managing directors, the level just below the board, is predicted to increase to £167,000 in 2013, up from £116,000 in 2012. This amounts to 115% of their average salary, up from 88% in 2012.

The research from financial services recruitment firm Astbury Marsden showed City firms are also offering increasingly large remuneration packages to lure new senior staff members.

In 2013, managing director level staff received a 29% boost to their basic pay when they moved jobs, compared to only 15% in 2012.

Average pay in the City also rose much faster than inflation - by 6% in 2013 to £86,000.

Around 47% of respondents had a pay increase in 2013 compared to 44% just two years ago

But junior and middle-ranking staff are not getting the same rewards as their better-paid colleagues it seems, as median pay is unchanged since 2011.

Mark Cameron, chief operating officer at Astbury Marsden said: “Despite pressure to keep a lid on bonuses, as the economy recovers and bank profits start to return, it’s not unreasonable that bonus expectations also rise.  Although prospects have improved, some may find themselves disappointed this year.”

Banking reform bill

This research comes as the 200-page banking reform bill re-enters the House of Lords today (Monday). With only one amendment, commentators are predicting it will be passed before Christmas.

The bill includes a package of measures to protect consumers from bank failings and force bankers to take responsibility when things go wrong. For example, it will allow bankers to be charged with reckless misconduct if banks run aground, and will force institutions to keep their high-street and investment banking operations separate.


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