Bankers and traders may see a dip in bonuses this year, according to a salary report. Emolument, a U.K.-based salary benchmarking website says that bankers who are responsible for mergers and acquisitions are likely to see their bonuses fall by 4 percent while currency and commodity traders could see a 9 percent slash in their bonus due to “heavy losses” across many trading desks this year.
A managing director under the commodity traders group is expected to receive a bonus of £265,000, which is a sharp drop compared with £290,000 last year, the report highlighted.
Directors will see an 8.8 percent decrease in 2016. The salary report said on average, a director may receive £114,000—another significant decrease in bonus when compared to 2015 when they made up to £125,000.
Banker bonus has been a hotly debated topic for many years and in light of new regulations, many financial institutions are forced to find ways to keep compensation and bonuses under control.
Last month, at an academic conference, Deutsche Bank Chief Executive John Cryan said “compensation is still too high,” [and] “we’ve just paid people too much across the board.”
Cryan said that seven years after recession, traders were immediately rewarded for profits that could have easily slipped away. “Many people in the sector still believe they should be paid entrepreneurial wages for turning up to work with a regular salary, a pension and probably a healthcare scheme and playing with other people’s money,” Cryan added, according to the Guardian.
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