Bonus pools at investment banks are expected to hit record levels and increase between 10% and 50% over 1999 levels according to research by TMP Worldwide, an executive search firm. In London, total bonuses may top £1bn, according to Close Wealth Management.

Consolidation across the banking industry has led to a rise in guaranteed bonuses as merged firms try to retain talent. Some banks have already announced their bonuses to staff, while the rest will do so early this year.