Bankers demand pay rises to compensate for bonus clampdown

[Antaletriangle]

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4790341/Bankers-demand-pay-rises-to-compensate-for-bonus-clampdown.html

Senior bankers are demanding pay rises of up to 10 per cent to compensate for the lack of bonuses being awarded, a city head-hunter has disclosed.

By Murray Wardrop
Last Updated: 7:49AM GMT 24 Feb 2009

Northern Rock announced that it will pay bonuses to hundreds of staff despite losing £1.4billion in 2008 Photo: REUTERS
As bonuses have been cut amid public anger over the banking crisis, it is predicted that city salaries could more than double over the next few years.

Shaun Springer, chief executive of executive search firm Napier Scott Napier, said bankers are trying to make up for less generous bonuses through higher salaries.

The claim comes as nationalised bank Northern Rock announced that it will pay bonuses to hundreds of staff despite losing £1.4billion in 2008.

Mr Springer told The Independent: "Base salaries are being increased by somewhere between five and 10 per cent, by rule of thumb, to compensate for an overall fall in the remunerative package.

"This is being done in recognition of perhaps a long term change, in which one can envisage basic salaries in the long term doubling, tripling or quadrupling compared to where they are today and bonuses falling by as much as 80 per cent."

He added: "People used to earn, say, between £100,000 and £150,000 and receive bonuses of 10 times multiples of their base salary.

"But a trend is now developing where someone has a basic pay of, say, £300,000 but with bonus multiple of only two or three times that."

Bankers across the Square Mile have seen their bonuses fall by around half this year in response to the credit crunch and a clampdown on the bonus culture by regulators.

[pyrangello]

You know on the budwiser commercial when they do the "real men of genius jingle". Here we go ..... Real Men of Genius , for the overlabored , palm soft, I never sweat bankers, for all the exhausting days you labor in the back room vault with your bookie hat on counting your mounds of money and at the end of the day your all exhausted and just say WOW! Singer comes in , I'm so constipated from counting all this money that isn't mine but it really is!!!, Here's to you Mr. Banker , the guy that used to skim pennies off of each account until he had stones and was admitted to the hospital and counldn't get back on that saturday to redo the books! Singer again " I did it for 20 years so proudly!!!!" . Yes here's to you Mr banker an ice cold budwiser beer for now you have graduated to stealing the money from your own people!

[Jacqui D]

I guess these bankers are getting desperate grabbing money where ever they can, they know there time is short now, but when the whole system crashes and banks will be no more as some have announced on this site what use will money be!
I'm watching and waiting i don't have money in that capacity so it doesn't really affect me.
You can see those who have creamed off the like of savers, tax payers etc running round in a sweat!

OOOOH what will they do? well they'll have to be like the rest of us, live meagerly!
HA! there'll never survive!

[Surial]

I also find it odd that the banks received all that bailout money and still did not unfreeze the markets. On top of giving bonuses, they are increasing the rates. How does this help the people? All the banks are also being bought up by the federal government in the U.S. More regulations on money - but how will we see positive results regarding the banking industry?

[Ammit]

As far as I am concerned, if they can afford to do that then they should be made to repay the bailout money first.

[Antaletriangle]

I feel that people who have little money have little to lose so they're onto a winner from the outset-i feel sorry for these money grabbers they appear to be so lost...

[Jacqui D]

Don't feel sorry for them Antaletriangle, it disgusts me how they make money, do i sound bitter lol!!

[THE eXchanger]

someone should milk the cream...
back out of the fat cats
the eXchanger

[DAYDREAMER]

Greedy people that put the econony in trouble with their crazy decision making. How can they make demands for salary increases, now that their bonuses have been taken away. Aren't bonuses supposed to reward good work? Someone tell them that.

And I am studying to work for a them, but near the bottom of the ladder only. :lightsabre: I'm going to the Dark Side

[Antaletriangle]

The evil that men do! lol. I find it hilarious,it's so base this money chasing lark-i realise we need dosh but crikey charlie..they're bloomin' possessed or something;like little kids after another icecrame!!lol.lol.

[Anchor]

I've worked in a financial services company for more than 10 years. Up untill two years ago I worked in the UK (London). I can assure you that those salaries quoted above are not normal for the majority of people that work in banks - another example of sensationalist reporting leading to over anxious reactions.

Even as a senior IT oily rag I did earn quite a lot, but we were lucky if we made a bonus that was 20% of our basic - and that was on a very good year.

You only get the huge bonuses in narrow fields within the banks and at the very top of the management tree or in very specialised areas like capital markets trading of your some kind of hot-shot-big-swinging-dick fund manager.

Relax, it will all be over "soon"

Money, get away.
Get a good job with good pay and youre okay.
Money, its a gas.
Grab that cash with both hands and make a stash.
New car, caviar, four star daydream,
Think Ill buy me a football team.

Money, get back.
Im all right jack keep your hands off of my stack.
Money, its a hit.
Dont give me that do goody good b*llsh*t.
Im in the high-fidelity first class traveling set
And I think I need a lear jet.

Money, its a crime.
Share it fairly but dont take a slice of my pie.
Money, so they say
Is the root of all evil today.
But if you ask for a raise its no surprise that theyre
Giving none away.

"HuHuh! I was in the right!"
"Yes, absolutely in the right!"
"I certainly was in the right!"
"You was definitely in the right. That geezer was cruising for a
bruising!"
"Yeah!"
"Why does anyone do anything?"
"I don't know, I was really drunk at the time!"
"I was just telling him, he couldn't get into number 2. He was asking
why he wasn't coming up on freely, after I was yelling and
screaming and telling him why he wasn't coming up on freely.
It came as a heavy blow, but we sorted the matter out"

A..

[Antaletriangle]

Yeah cracking tune Anchor...
http://www.youtube.com/watch?v=Xl6NfQyNLto

[alyscat]

Well, yes, Anchor, we didn't think it was middle management getting the big bucks - or looking for a way to adjust for the loss in bonuses. After all, it's the CEO and CFOs that manage that.
alys

[Anchor]

Alyscat, Yes I know, the propoganda is not aimed at us (or if it is, its a waste of time) however the angry masses can be focussed at the last bastions of the well heeled "upper middle class" - the real targets. It doesnt matter if they are not fat cats really, but lets get everyone on thier case regardless.

Well, even here in Australia, I am still working in financial services and consequently quite well paid, but no one here is on the >300k kind of money. It really is just the top two or three tiers of global organizations that are many tens of thousands of people strong, or some flashy boutique companies that are clients of the bigger ones making that kind of dough (a lot of these are crying in thier soup now - I can hear some of them as I walk around Sydney...).

A..

[oldpaganfreak]

imagine a world where one can get paid bonuses and huge salaries
for being incompetent and losing their shareholders lots of money.

what a strange world it would be.