With bonus reviews high on banks’ agenda,eFinancialCareers’s Global Bonus Expectations Survey reveals that 6 in 10 (61%) City workers expect a bonus this year, while a quarter (26%) does not. Professionals working for institutional asset management firms hold higher hopes with 80% expecting to receive a bonus this year. This compares to 64% of people who work in banks.
Overall, four in 10 (40%) also reveal they are feeling more or significantly more confident about their bonus compared to this time last year, and as many as three in 10 (28%) expect bonuses to increase in the next three years.
City workers, however, are not among the most hopeful when compared to their counterparts around the world. eFinancialCareers polled over 4,500 financial professionals across seven regions, and Hong Kong and Germany-based respondents were the most upbeat, with over eight in 10 (83 %) employed finance professionals expecting a bonus in the financial year 2013, closely followed by their counterparts in Singapore (72%). Meanwhile, financial professionals based in the financial centers of the Middle East were feeling the most confident, with nearly half (48%) stating they felt more or significantly more confident about their bonus compared to this time last year.
In the UK, six in 10 (58%) anticipate an increase, while a quarter expect no change, and nearly two in 10 (17%) a decrease. In comparison, those on Wall Street are the most restrained, with 4 in ten (42%) anticipating an increase. Back to the UK, of those who expect a bigger bonus, over a third (35%) predict their bonus to grow by no more than 10%, and nearly 3 in ten (27%) bargain for an increase of between 11% and 30%. Most cited personal performance (40%) or company performance (27%) for the main reason they will receive a bonus increase.
The Bonus Expectations survey also questioned respondents about framework surrounding bonus structures, including deferral and clawback policies. Nearly three quarters (73%) of respondents don’t expect any of their bonus to be deferred, and just under two thirds (62%) believe that over 71% of their bonus will be immediately available as a cash payment.
Asked about their main concern about the potential downward influence on total compensation, 4 in ten (40%) respondents cited market conditions, and nearly a quarter (24%) companies’ voluntary constraints. The EU’s proposed cap on bank bonuses was of concern for only two in 10 respondents (19%). As regards the possible UK exit from the EU, two thirds (65%) of respondents said they were not concerned. Should it happen, however, over half (56%) feel it would weaken the City’s standing as a leading financial centre.
Speaking about the results, James Bennett, Global Managing Director ofeFinancialCareers, said: “Returned confidence in the industry seems to be building, and it is encouraging to see a large proportion of financial professionals feeling more or significantly more confident about their prospects than they did last year. However, bonus pay-outs still depend on a positive close to the year. ”
To view the eFinancialCareers bonus expectation survey results as an infographic click on the link below:
Q: Are you expecting a bonus this year?
|
|
|
Singapore |
Hong Kong |
Australia |
UK |
US |
Middle East* |
Germany |
| Yes |
|
72% |
83% |
67% |
61% |
59% |
61% |
83% |
| No |
|
14% |
8% |
23% |
26% |
27% |
21% |
17% |
| Not Sure |
|
15% |
9% |
9% |
14% |
14% |
19% |
- |
Q: How confident are you about your bonus compared to this time last year?
|
|
Singapore |
Hong Kong |
Australia |
UK |
US |
Middle East* |
Significantly more confident |
11% |
12% |
18% |
11% |
11% |
21% |
More confident |
22% |
26% |
23% |
30% |
18% |
27% |
I feel the same |
45% |
42% |
40% |
42% |
50% |
39% |
Less confident |
18% |
15% |
14% |
15% |
11% |
9% |
Significantly less confident |
4% |
5% |
6% |
2% |
10% |
3% |
Please note total may not equal 100 due to rounding
