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Stagnant salaries force City firms to get creative

Headhunters and consultants predict that pay is unlikely to rise in the coming years – and workers are demanding an alternative

Stagnant salaries force City firms to get creative
Photo: Getty Images

The hottest debate in the City each bonus season is over how much bankers should earn for their specific functions when their firms don’t deliver growth overall. The second hottest is what should replace the money if it’s not going to be there.

Public acceptance of big bonuses for bankers is disappearing, said Jon Terry, PwC’s UK financial services people leader, as is shareholders’ tolerance for poor returns on equity.

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