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Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.
Bonus season has the promise of even better riches for Metropolis employees this 12 months after British and US banks scrapped EU-imposed bonus caps — however how will yours measure up?
With M&A exercise on the rise, some UK-based bankers and attorneys are ebullient about their wage and bonus prospects for this 12 months and past. Nevertheless, elevated payout ratios could come at the price of decrease base salaries, additional concentrating rewards within the palms of prime dealmakers.
For the fourth successive 12 months, the Monetary Occasions is asking readers confidentially to share their bonus spherical expectations; how they’ve seen pay insurance policies shifting and whether or not they intend to take a position, save or spend any money they’re awarded.
FT 2025 bonus survey
Our survey might be accomplished anonymously in lower than 5 minutes by clicking here. Or go to FT.com/bonussurvey
This 12 months’s outcomes are anticipated to be the primary 12 months that bonus cap modifications will likely be absolutely mirrored within the pay packages of prime earners. Though the cap was eliminated in 2023, British-based banks have taken time to evaluation and absolutely implement their pay insurance policies, presenting a combined panorama.
Whereas European banks in London should nonetheless cap bonuses at twice base wage, Barclays and JPMorgan have determined to award so-called materials threat takers up to 10 times their mounted pay, whereas Goldman Sachs has opted to chop base pay, however improve the bonus ratio to 25 occasions.
The authorized career is anticipated to be the opposite massive winner this bonus season, because the arrival of massive US regulation companies within the capital disrupts the market, fuelling pay wars for talent.
Readers will have the ability to inform us anonymously how any modifications will have an effect on their private pay prospects, in addition to altering competitors dynamics within the wider recruitment market.
The survey additionally offers readers the prospect to say how Labour’s first Price range has affected their monetary planning, from the expense of paying VAT on school fees to how proposed inheritance tax changes make pension saving much less engaging.
Last year’s FT bonus survey revealed that many well-paid professionals had been squeezed by a mixture of smaller payouts and better rates of interest.
Accomplished by practically 3,000 FT readers, 58 per cent stated their bonus had fallen or flatlined in contrast with the earlier 12 months, and there was a pointy leap [64 per cent] within the numbers of people that stated they supposed to make use of their bonus to scale back mortgage money owed. Nevertheless, half of respondents nonetheless supposed to take a position the majority of any bonus payout tax-efficiently.
Adjustments to the banker bonus cap had been in progress on the time of final 12 months’s ballot, however 4 out of 5 FT readers stated they would like security over glory, favouring a excessive base wage and a restricted bonus, versus a low base wage and a vast bonus.
The outcomes of the nameless ballot will likely be collated and printed within the coming weeks. Please guarantee your reply reaches us by the deadline of Monday February 10, and direct any queries to our ordinary electronic mail handle, money@ft.com.
