· News

Senior City staff banking on large bonus payouts

Bonuses for the most senior City workers are expected to increase by 44% in 2013 despite pressure from shareholders and the public to scale back large bonus payouts, research from financial services firm Astbury Marsden has found.

Salaries, for workers in the City of London, have risen almost twice as fast as inflation at 6%, the research found. Bonuses for managing directors is predicted to increase to £166,955 in 2013 up from £115,618.

The study found City employers are offering increasingly large pay rewards to "entice" the most senior staff to join their company. In 2013, managing director level staff received a 29% boost to their basic pay when they moved jobs, compared to only 15% in 2012.

Average pay for a City worker rose by 6% in 2013 from the previous year to £85,921.

Astbury Marsden chief operating officer Mark Cameron said: "Despite pressure to keep a lid on bonuses, as the economy recovers and bank profits start to return, it's not unreasonable that bonus expectations also rise. Although prospects have improved, some may find themselves disappointed this year.

"City firms are showing a growing appetite for poaching the very best talent from rival firms in the last few months suggesting that the City is now spending less time looking over its shoulder and more time investing in the best people."

Last month chancellor George Osborne announced a legal challenge with the European Court of Justice against EU plans to cap bankers' bonuses.