Staff in the City 'expect higher bonuses'

Despite the controversy surrounding bonuses of big City bosses this year, financial services staff are still expecting higher bonuses.

According to a survey of almost 500 professionals by jobs website eFinancialCareers.com, 53 per cent expected their total earnings to be higher than last year and 25 per cent believed they would be about the same.

The survey showed that of those expecting more money, 27 per cent believed they would receive a pay rise of more than half.

Over half of respondents were sceptical as to whether changing pay structures would fully discourage the type of excessive risk-taking that contributed to the financial crisis.

However, there was a belief among staff that if their company were to link bonuses to longer-term profitability and include clawback clauses, it would do more to discourage individuals from taking excessive risks.

Earlier this year, the Financial Services Authority questioned the management skills of bank bosses, saying that bonus deals lasting longer than a year will break new rules.