INDUSTRY NEWS

City bonus culture ‘will change’

The bonus culture associated with some London jobs is set to change, according to research by the Centre for Economic and Business Research (CEBR).

It has predicted bonuses paid at the start of 2009 will be down by 60 per cent compared to when they peaked in 2006.

“This is not the end of the bonus system,” noted Richard nook, co-author of the research.

“But with shareholders (likely to include the government in some cases) and the FSA breathing down employers’ necks and a labour market with plenty of people available, it is unlikely that we will see bonuses paid on the scale of the past four years in the foreseeable future.”

The CEBR’s research found 50 per cent of bonuses tend to be invested in property and the reduction could further dampen the sector’s performance.

Workers in offices in London are hoping the government does not act against their bonuses, after it told banks to cut the size of executives’ pay.ADNFCR-1329-ID-18819019-ADNFCR

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