Banks may be hiking up their salaries to absorb their cut to bonuses, says a major economics research group. The bonus season is about to begin and banks are already dreaming up schemes to ensure they’re still raking in the same amount of cash.
Bonuses are to be slashed by 86% compared to their £11.4bn peak in 2008, but those from the city are still expected to pocket a whopping £1.6bn. Though down on four years ago, bonuses are still being announced despite a predominantly flat-lining economy.
Fears that salaries are ramping up to absorb the cut to bonuses are supported by figures from Income Data Services which found a 27% rise in overall pay and benefits to top executives despite the cut in bonuses. Only last week the ONS also revealed that salary of the highest paid employees more than doubled in real terms since 1986.
The fat cats aren’t getting any thinner.