Most UK finance professionals expecting a bonus

More than eight in 10 City workers in the UK expect to receive a bonus this year, a survey revealed today, despite the economic downturn and public pressure to curb excessive pay.

Nearly half of those who expect to receive a bonus believe their bonus will be higher than their 2011 award, the survey of more than 800 financial market professionals revealed.

But at the same time the survey revealed that four in 10 City workers feel less or significantly less confident about their bonus compared to this time last year.

The survey - conducted between September 18 and October 8 - is published as City pay remains under the focus of regulators and politicians.

Bank of England governor Mervyn King has urged banks to reduce payouts in favour of hoarding cash, while Business Secretary Vince Cable is considering reforms designed to give shareholders more power over excessive pay.

James Bennett, global managing director of career site eFinancialCareers, who conducted the survey, said: "Pay for performance is still ingrained in the culture of financial services in the City. If people have performed well, they still expect bigger bonuses.

"However, continued pressure from market conditions, overall business performance and public opinion are serving to moderate expectations in the sector."

Nearly three out of 10 City workers expect a decrease in bonus, with 31% of respondents at banks believing their bonus will be down on last year.

The proportion of respondents not expecting to receive a bonus this year has increased to 18%, from 11% last year, the survey said, with company performance and market conditions cited as the two main reasons.

City workers expecting a boost to their bonus package cited personal performance as the primary reason, with company performance coming in second place.

Asked about their main concern about the potential downward influence on total compensation, half of respondents cited market conditions, and more than a quarter blamed pressure from the public and politicians.

In comparison, the mood on Wall Street is more optimistic.

The US survey showed that nearly half of Wall Street employees expect their bonus this year to be higher than the bonus they earned in 2011 - up from last year when 41% of survey respondents believed their annual bonus would increase.