The finance industry bonus pool has shrunk significantly this year, both in the UK and the US, which will leave many disappointed with their less-than-bumper bonus payouts.
Traders have had a particularly difficult 12 months, with instability in the markets, geopolitical tensions and other uncertainties impacting on performance. However, even stronger-performing areas such as mergers & acquisitions may see lower-than-average bonuses.
Public opinion on both sides of the pond is still heavily stacked against bankers’ bonuses, and the approaching general election in the UK is adding political pressure to keep rewards minimal. The introduction of a European cap, which limits bonuses to twice that of fixed an employee’s fixed salary, is also taking its toll on bonuses at Deutsche Bank and Barclays in London, according to the Financial Times.
Billions of fines by industry regulators have also helped to shrink the available bonus pool at banks including HSBC and Royal Bank of Scotland, making massive paycheques increasingly unlikely on Wall Street, or in the City.
After winning the German presidency for her fourth term, Angela Merkel must weld a coalition government or have a minority rule with the most far-right politicians seen in 50 decades.
A study of the leadership pipeline at the UK’s FTSE 100 corporates shows modest progress, but many top companies still have no ethnic minority presence.
The world’s third-largest economy expanded by 1.0% in the second quarter of 2017 over Q1, giving an annual rise of 4.0% in gross domestic product for the year to June.
The majority of the region’s 28 member states report that the situation has worsened over the past year, reports business management consultant Verisk Maplecroft.