THE GUARDIAN: Bonus payouts shrank by 8% over last 12 months at the same time as permanent 7% rise in basic salaries in Square Mile
Workers in the City of London who have seen contentious bonus payouts shrink by 8% over the last 12 months have more than made up for their loss through a permanent 7% rise in basic salaries, according to a study published today.
Bonuses paid to City workers fell from £7.3bn to £6.7bn for the year to April, the Centre for Economics and Business Research (CEBR) says, but these purported performance-linked payouts remain a step above levels recorded in 2009, when the worst banking crisis since the 1930s saw the City's bonus pool dip to £5.3bn.
However, more than offsetting the impact of shrinking City bonuses, basic salaries in the Square Mile – which still make up the lion's share of pay deals for most City workers – jumped 7%, according to CEBR's analysis of official data from the Office for National Statistics.
Lord Oakeshott, the Liberal Democrat peer who resigned as a party spokesman in protest at what he saw as the coalition's failure to curb banking industry excesses, said: "Real incomes are now being seriously squeezed in the rest of Britain but City pay just sails merrily on." » | Simon Bowers | Tuesday, April 26, 2011
