A significant 33 per cent said their 2009/10 bonus included a deferred payment element, up from only 13 per cent last year. In 2009/2010, a quarter of those surveyed stated that they received a lower bonus than the previous year. This compares to 60 per cent who received a lower payout in 2008/09 versus 2007/08.
The bonus survey, carried out by Morgan McKinley, also found just over a third of respondents had undergone a change in the structure of their total compensation package in the last 12 months.
“Over the next few years, I think we may plausibly see a decrease in the cash element of bonuses and an increase in deferred bonus structures, with payouts being made over a period of years and other forms of remuneration, such as shares,” said Andrew Evans, managing director, Morgan McKinley financial services. “We are likely to see a greater variation in the structure of employee compensation amongst different institutions as they find new ways to reward the brightest minds in the industry.”
The average financial services salary rose two per cent to £51,560.