UK bankers expect 13 pct bonus deferral - survey
Updated: 2011-01-31 13:23
LONDON - Investment bankers working in Britain expect, on average, 13 percent of their bonuses will be deferred, according to a survey published on Monday by financial services recruitment firm Astbury Marsden.
The survey's findings showed most bankers were fighting recommendations made by European Union regulators for at least 40-60 percent of top bankers' bonuses to be deferred over 3-5 years.
"Below vice-president level, most staff are not ready for the idea that they have to accept another year of deferred bonuses," Astbury chief operating officer Mark Cameron said.
Astbury Marsden's survey polled more than 1,100 investment bank staff.
Bankers in fixed income expected the largest proportion of their bonus to be deferred, namely 22 percent. Mergers and acquisitions bankers expected deferral of 19 percent of their bonuses, according to the survey.
The EU introduced a law in January to curb excessive bonuses amid public anger over payouts made by banks, many of which were bailed out by taxpayers during the financial crisis, including Lloyds and Royal Bank of Scotland.
British banks such as Barclays and HSBC have raised the fixed part of bank pay in what they say was an essential move to retain staff.
The banks say a clampdown on how much they pay staff could see top bankers defect to rivals in Asia or Wall Street where authorities have not cracked down as hard on the finance sector.
Government efforts to get Britain's "Big Four" banks -- Barclays, HSBC, Lloyds, and RBS -- to curb bonuses and lend more to business, have been mired in difficulties.
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