Bloomberg News

City of London Losing Confidence Over Bonuses, Survey Shows

October 16, 2012

Almost a fifth of employees in London’s financial district don’t expect to receive a bonus this year, according to a survey by recruitment website eFinancialCareers.

That compares with 11 percent who anticipated they wouldn’t get the payment, known in the industry as a “doughnut,” in 2011, the company said in a statement today. About 42 percent in the City expect a lower bonus than last year, up from 37 percent.

The poll of 828 bankers traders and investment professionals shows confidence about pay in the U.K.’s financial district has dwindled before the year-end bonus season. Banks and other financial firms in western Europe have cut more than 30,000 jobs this year, according to data compiled by Bloomberg Industries, as the euro-region crisis roils markets and trading activity is muted.

“Pay for performance is still ingrained in the culture of financial services in the City,” James Bennett, global managing director of eFinancialCareers, said in the statement. “However, continued pressure from market conditions, overall business performance and public opinion are serving to moderate expectations in the sector”

About 38 percent said they expect a higher bonus this year and 21 percent anticipate no change, according to the survey conducted in September and October.

Separately, the median salary increase for executive directors in Britain’s FTSE 250 publicly traded companies rose 3 percent this year, the same as last year, according to the accounting firm Deloitte LLP.

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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