City workers' pay formula changes

Bonus payouts in the City for 2010-11 fell by 8% to £6.7 billion, down from £7.3 billion in the previous fiscal year. But lower bonuses have not put an end to the culture of high pay in the City.

However, City workers continue to earn bumper pay packets bolstered by rising regular pay, according to research by the Centre for Economics and Business Research (Cebr). Cebr estimate that average regular pay for City workers in the first quarter of 2011 is some 7% higher than a year ago and much higher than growth of just over 2% for the UK as a whole.

“Our research shows that falling bonus payments this year are being offset by rising regular pay packets,” said Scott Corfe, Cebr economist and co-author of the research.

“City workers are not earning less — their earnings are merely becoming less bonus-driven as basic pay continues to grow much faster than other parts of the economy”.

www.cebr.com/wp-content/uploads/London-and-the-City-Prospects-Press-Release-21-April-2011-City-Bonuses.pdf