City workers see 7% pay rises
Tuesday, 26 April 2011
Individuals in investment management jobs in the City may be among those who have experienced pay rises this year to make up for a reduction in bonuses.
According to figures from the Centre for Economics and Business Research (CEBR), the average pay packet rose by seven per cent in the last 12 months, while bonuses were down by eight per cent.
Co-author of the research and economist at CEBR Scott Corfe said: "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."
However, the group warned that the increasingly globalised nature of the financial markets means that if extra regulations and tax burdens are implemented on city firms, this will quicken the pace at which companies are driven to competition in the Far East.
According to a recent report in the Economist, many finance professionals from the UK are seeing Asia as an attractive destination, with Singapore and Hong Kong the top locations.
