City bonuses 2012/13 predicted to be half the amount paid in 2011/12

chewmylegoff

Don't remember this being posted before and did a quick search, but it isn't particularly new so sorry if it has been posted before:

http://www.cebr.com/wp-content/uploads/London-City-Regional-Prospects-Press-Release-May-2012-City-Bonuses.pdf

This predicts that bonuses for the 2012/13 year will fall to £2.2 billion from £4.4 billion in 2011/12.

A couple of observations:

(i) TruckerT can write a cryptic post that no-one understands

(ii) Brit will wet himself with joy over the prospect that reduced city bonuses will presumably have some sort of cooling effect on london property (unless of course they're all just being paid much higher basic salaries instead). Nollag will say it will be offset by Greeks buying London property and then mention that he is putting his tenants' rent up by 10% yet again.

(iii) Lower bonuses means lower tax take (probably, unless they weren't paying any tax anyway, or they're now all just being paid higher basic salaries), which isn't going to help the deficit.

kabayiri

I presume there will be a mass exodus of talent from the city; a following through on their predictions from recent times ?

This isn't going to hit Manchester too much (not that you'd notice).

chewmylegoff

kabayiri wrote: »

I presume their will be a mass exodus of talent from the city; a following through on their predictions from recent times ?

doubt it, unless anywhere else is paying loads more. it's a global industry, if they're not making money here, they're probably not making money elsewhere.

This isn't going to hit Manchester too much (not that you'd notice).

There is only one deficit and it's the same wherever you live.

chucky

chewmylegoff wrote: »

City bonuses 2012/13 predicted to be half the amount paid in 2011/12

Hasn't there been an increase in salaries since 2010 to try and avoid the bonus cuts? there would be along way to go to match bonus payments though.

I haven't checked this but does this cut in bonus payments exclude the options on shares and is just cash remuneration?

chewmylegoff

chucky wrote: »

Hasn't there been an increase in salaries since 2010 to try and avoid the bonus cuts? there would be along way to go to match bonus payments though.

I haven't checked this but does this cut in bonus payments exclude the options on shares and is just cash remuneration?

I suspect there is some element of bonuses being replaced by basic salaries, but as you say it is unlikely to be equivalent, or close to, the total fall of £2.2 billion.

There is insufficient information in the article to work out whether it is referring to cash payments only, or total bonus payments including shares and options. It does talk about bonuses "paid" but I don't think that is conclusive, as it could mean paid in shares/options.

It was widely reported that large parts of 2011/12 bonus awards to UK staff were being made in shares (e.g. HSBC capped cash at £50k, and the state owned banks cash bonuses were supposedly almost nothing, £3k or something).

Therefore I think that if this is the cash element only, it would be surprising if movement away from cash to shares in the coming year told the whole story of the projected decrease in the headline figure.

Generali

Bonuses were crap this year and will continue to get worse. There's no point in paying big bucks if nobody is hiring! (I admit an investment banker and someone else are likely to have different ideas of what 'big bucks' means.

Wookster

All I can say is its about time banks became about shareholder value rather than about value for their senior staff.

Banks ought to be refraining from bonuses and using that savings to enhance profitability in order to build up buffers against further crisis rather than shutting off the supply of credit and continuing to pay big buck bonuses.

nollag2006

chewmylegoff wrote: »

...Nollag will say it will be offset by Greeks buying London property and then mention that he is putting his tenants' rent up by 10% yet again...

Nah.

Only put two of my tenants rent up by 5%.

The other one is a muppet who Sold To Rent in early 2009. I took great pleasure in upping his rent by 10% this year, after a lecture from him on how unfair it is that the flat he rents from in Ealing has risen 20% since he moved in.

[IMG]http://www1.landregistry.gov.uk/Apps2/house-prices/house-price-index-custom-reports/hpi_report.asp?g=1&gt=1&a=Ealing&s=01 May 2009&e=01 April 2012&t=1[/IMG]

He's still waiting for "the crash"