2014 will prove to be a tougher year for bonuses for some.
The Financial Times reports that in London people close to big City investment banks such as Deutsche Bank and Barclays said their bonus pools had been hit by weaker fixed-income trading figures and the impact of a European bonus cap, limiting payouts to no more than twice a banker’s fixed pay.
Tom Gosling, head of PwC’s reward practice, said: 'Bonuses in the UK banks will almost certainly be down, but the problem for the industry is that the public’s trust in banks has never really been rebuilt so, for some, any level of bonus will be too much'.
Some banks, such as HSBC and Royal Bank of Scotland, are expected to deduct from their bonus pools part of the record $4.3bn fines for foreign exchange manipulation that they and four other banks – UBS, JPMorgan Chase, Bank of America and Citi – paid to regulators in November.
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