As the Governor of the Bank of England, Sir Mervyn King, reveals his fear that Britain could be in the grip of the “most serious financial crisis ever”, the bonus expectations of UK-based finance professionals remain extraordinarily high, according to eFinancialCareers, the leading global career site network for professionals working in the investment banking, asset management and securities industry.
eFinancialCareers’ latest bonus expectations survey reveals that almost nine out of 10 (89%) of the City’s finance professionals expect to receive a bonus this year. Of those who expect to receive a bonus this year, nearly half (46%) expect their bonus will be higher in comparison to last year’s, just under three out of 10 (28%) expect a decrease, and a quarter (25%) believes it will remain the same. The bullish bonus expectations, however, hide a downward trend compared to last year’s survey. Of those who expected a bonus, over six out of 10 (62%) were expecting an increase on the previous year, and only 12% expected a decrease. Overall expectation stood at 93% in 2010.
In this year’s survey, personal performance was the most cited primary reason for a bonus increase (32%), followed by a change of employment (18%) and company performance (17%). Amongst the respondents who expect decreased bonuses, market conditions (48%) and company performance (36%) stand out as the most-cited primary causes.
Looking further ahead, optimism fades away: almost half of respondents (49%) predict bonuses will decrease over the next three years, and 29% anticipate bonuses will stay the same.
James Bennett, Managing Director of eFinancialCareers, EMEA and APAC says: “External observers may be shocked by the confidence being expressed by bankers ahead of the bonus season. However, the pay-for-performance culture is very much ingrained in the financial psyche, and even in times of market turmoil, financial institutions need to take care of their best talent in order to retain them.”
City workers remain optimistic of bonuses amidst market turmoil
As the Governor of the Bank of England, Sir Mervyn King, reveals his fear that Britain could be in the grip of the “most serious financial crisis ever”, the bonus expectations of UK-based finance professionals remain extraordinarily high, according to eFinancialCareers, the leading global career site network for professionals working in the investment banking, asset management and securities industry
