views

CITY VIEWS: IS THE GOVERNMENT'S RENEWED ASSAULT ON BONUSES JUSTIFIED?

<strong>MARK HUNTER INVESTIT</strong><br />&ldquo;The bonus culture is the thing that differentiates London as a financial centre. We do need checks in place but the City has been through the mill on that. There is an issue with the public and bonuses but it is perception rather than reality.&rdquo;<strong>GORDON MILNE SAVILE GROUP<br /></strong>&ldquo;It is not justified and it won&rsquo;t be effective, since it is more likely to be a PR exercise for the government than a concrete policy with benefits. Banking is an industry where large bonuses are the norm, and senior managers ignore them at their peril.&rdquo;<br /><strong>ALFRED WILSON TYSERS INSURANCE</strong><br />&ldquo;Certain bank operations take on liabilities which could impact on future profitability, so bonuses should be geared towards that risk by vesting over a longer period of time and so on. But where there is no liability, there should be no problems awarding bonuses.&rdquo;<br />