A new survey shows 93 - percent of UK financial firms are concerned about the likelihood of their top staff leaving as a result of the EU’s bonus cap nearing the horizon.
Recruitment firm Robert Half Financial Services found that almost two thirds of UK financial companies in its survey have ratcheted up their employee’s salaries over concerns that they would lose financial services talent to international opportunities as a result of the bonus cap. Sixty-five-percent of UK firms have offset the bumper bonus cap with a salary increase of 20-percent and 60-percent have increased employee benefits, showed the survey’s results released on Monday. The firms are worried about a mass departure of talented and experienced employees when the limit on annual bonuses comes into effect in January 2014, which aims to prevent the careless habits of some bankers. Earlier this year the EU Council introduced a limit on performance awards being greater that 100-percent of the employee’s fixed salary, unless given shareholder’s approval to boost it up to 200-percent. The Parliamentary Commission on Banking Standards has called on the government to do more to imprison bankers showing a record of reckless banking, which affects the economy of the nation.