Tougher rules see UK bank bonuses down 6%

Bonuses paid to bankers and financial industry staff in the UK fell last year to £13,100 (€17,800) on average, down £800, or 6% from the previous year, as tougher rules force a change in pay structures.

Total finance industry bonus payments fell 10% to £13.6bn and are down more than a quarter from their 2008 peak, figures from the Office for National Statistics showed yesterday, although payouts were still more than eight times the average of £1,500 across all industries.

Since peaking at £18.7bn seven years ago, bonuses in the financial sector have been capped by European rules, designed to reduce the motivation for risky trades that generated lucrative short-term returns but are blamed for helping create the 2007/09 financial crisis. Payments can now be equal to basic annual salaries, or twice that level if shareholders give their permission.