Bonus payouts in the city will be cut by 16% this year as institutions struggle to cope with the credit crisis, new research suggests.
The centre for economics and business research(cebr) found 2007 bonuses, to be paid at the start of 2008, will reach just £7.4bn - well below the record £8.8bn paid out in 2006. Its bi-annual London and the City prospects report found City firms are looking to cut costs and the easiest way to do so is to make smaller payouts. Investment banks and hedge funds will lead the cuts, given their highly incentivised schemes, with payouts in traditional areas such as securities remaining largely unscathed. The forecast is also not good for 2008 bonuses with cebr suggesting payouts will fall a f...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes