City workers set for smaller bonuses

City workers are on course to pick up average bonuses of £2,500 despite problems in the financial markets.

While payouts are likely to be 45% down on last year, Close Wealth Management says many in the City will still get big bonuses.

This is despite London's leading financial firms being forced to cut hundreds of jobs in the past year.

Close says firms are still keen to reward and retain top staff, while those in the more buoyant bond and fixed income markets have also benefited.

The investment wealth management company believes City workers are in line for bonuses averaging between 10% and 30% of their salaries.

However, the figures are a far cry from the bonuses experienced in 1999 and the early part of 2000 when the internet boom increased pay packets.

The majority of City bonuses are paid around Christmas and the New Year.

Close chief executive Martin Smith says: "There have been few mergers and acquisitions and even fewer floatations - all of which will be reflected in poor bonuses for those working in those areas.

"However, fixed income markets have thrived in 2001 and many people in this field can expect a fat cheque this Christmas."

Close says around 6% of those working in the City will receive bonuses of £50,000 or more.