Bankers think bonuses will break records
DESPITE protests from politicians and taxpayers against multi-million pound payouts, bankers expect this year’s bonus payments to break records, according to a new poll.
One in ten executives expect their best ever payout this year while the majority of traders, analysts and fund managers believe their bonus will either increase or not change.
And despite having experienced the biggest economic decline since the 1930s, only one in four bankers expect a fall in their bonus payout, the survey from Bloomberg found.
In September, leaders of the Group of 20 nations approved guidelines for financial firms calling for deferred bonuses for senior executives. The guidelines also permitted pay to be clawed back if a company had losses later.
But more than half of financial services workers believe restrictions on pay will stifle innovation while only 38 per cent think pay limits will control excessive risk-taking, the poll found.
The results reflect the improved business climate for financial companies following last year’s banking meltdown. Profits at larger banks, Goldman Sachs and JPMorgan Chase have soared this year.
In the global survey, Asians were the most optimistic about pay while Europeans and Americans were less so.
Some 39 per cent of Asians were expecting a fatter bonus this year compared to 33 per cent of Europeans and 30 per cent of Americans.
Meanwhile, in a separate survey from Bloomberg, New York and Singapore were found to have eclipsed London as the leading global financial centres.
Twenty-nine per cent of respondents in the quarterly pool of investors, traders and analysts said New York will be the best place for financial services two years from now.