Junior investment bank staff 'expect bonus cut'

31 January 2011

Junior staff at investment banks are expecting a slice of their bonuses to be deferred this year, as politicians across Europe and the US continue to put pressure on the industry to show restraint.

Bloomberg reports that new research from specialist recruitment firm Astbury Marsden found that lower-ranking workers in the sector predicted 13 per cent of their performance-related payouts would be delayed.

"The more senior staff, the rainmakers and the other big money earners are going to be dealt with very carefully at bonus time to get them to buy into the plan," said the firm's chief operating officer Mark Cameron.

He added that there was a "real risk" that employees lower down the chain would have their remuneration slashed to pacify angry lawmakers, while those further up continue to receive large sums in spite of the controversy.

Last week, Scottish secretary Michael Moore warned the state-owned Royal Bank of Scotland that it must not be a "market leader" on bonuses and insisted the UK government wanted to see lower payouts than in previous years.

By Tony Aynsley

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