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CEBR: Bonuses set to fall

09/10/2008

The Centre for Economic and Business Research (CEBR) has said bonuses are set to fall.

Its research predicted payments due in early 2009 will be 60 per cent lower than those given out in 2006.

Shareholders, the Financial Services Authority and a labour market "with plenty of people available" will force bonuses down, it said.

"This is not the end of the bonus system," noted Richard nook, co-author of the research.

However, it could have a serious knock–on effect on the struggling property market – half of all bonus payments are invested in bricks and mortar.

Mr Nook also says "it is unlikely that we will see bonuses paid on the scale of the past four years in the foreseeable future".

According to the CEBR the following year's bonuses could be hit even harder, and fall an additional ten per cent.

Workers in some financial jobs can receive more in bonuses than they do from their salary and could feel the squeeze most.

 

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