Almost three-quarters (71%) of City workers expect to receive a bonus this year, compared to 61% last year, according tp research by eFinancialCareers.
Its Bonus expectations survey, which polled 587 professionals working in banking and finance in the UK, 978 in the U.S. and 696 in Singapore, also found that more than half (56%) of those that expect to receive a bonux anticipate receiving an increased payment. Meanwhile, 27% expect there to be no change and 17% expect to recieve a reduced payment.
Among those who expect a bigger bonus, a third (33%) anticipate receiving an increase of between 11% and 30%, while 19% expect a raise of between 31% and 50%.
Almost half of respondents (42%) cited personal performance as the main reason they will receive an increased bonus.
When about frameworks surrounding bonus structures, such as deferral and clawback policies, 70% said they do not expect any of their bonus to be deferred, and 68% believe that more than 71% of their bonus will be immediately available as a cash payment.
However, around half (51%) said that cost cutting across the industry in general is their main concern around factors that could potentially negatively impact total compensation.
James Bennett, managing director of eFinancialCareers, said: “Although [this year] hasn’t been great in fixed income trading, it’s certainly been an improvement on last year when most banks saw big drops in their revenues. Combined with a perception that the global economy was improving, this has created more optimism.
“Bankers expect that banks will be prepared to reward them a bit more generously for their work in 2014 and want to retain them for an anticipated upturn in 2015. However, the recent big stock market falls suggest things aren’t quite as clear cut as had been assumed.
“There’s the potential for bankers’ hopes to be disappointed if the market turbulence continues and economic growth stalls.”
Q: Are you expecting a bonus this year?
Please note total may not equal 100 due to rounding
| UK | US | SG | |
|---|---|---|---|
|
Yes |
71% |
76% |
71% |
|
No |
19% |
15% |
12% |
|
Not Sure |
11% |
10% |
16% |
Q: What do you expect to happen to your bonus this year compared to last year?
| UK | US | SG | |
|---|---|---|---|
|
Increase |
56% |
60% |
42% |
|
No change from last year |
27% |
26% |
36% |
|
Decrease |
17% |
14% |
22% |
Q: If you are expecting an increase, how much more are you expecting this year?
| UK | US | SG | |
|---|---|---|---|
|
71%+ |
13% |
13% |
10% |
|
51-70% |
8% |
9% |
5% |
|
31-50% |
19% |
19% |
26% |
|
11-30% |
33% |
35% |
34% |
|
0-10% |
28% |
24% |
25% |
Q: Over the next three years what do you think will happen, in general, to the size of bonuses?
Please note totals may not equal 100 due to rounding
| UK | US | SG | |
|---|---|---|---|
|
Industry bonuses will increase |
26% |
34% |
23% |
|
Industry bonuses will stay the same |
39% |
35% |
36% |
|
Industry bonuses will decrease |
26% |
17% |
30% |
|
I’m not sure |
9% |
14% |
11% |