Thousands of City of London workers take home £1m salaries

30 July 2010

Thousands of workers in the City of London took home pay packets of more than £1 million ($1.56 million) in 2009.

More than 2,800 staff working in the heart of the UK's financial services operations received this level of remuneration, reports the Guardian.

According to figures from the Financial Services Authority (FSA), 170 people had contracts that were in breach of new requirements, which state up to 60 per cent of bonus payouts should be deferred over three years.

A consultation is now taking place on the FSA's pay code, which will soon expand its scope from 27 companies to 2,500 as a result of the capital requirements directive.

Under the proposed changes to the code, banks must ensure that their remuneration levels do not limit their ability to strengthen their capital base if required.

There is also a provision that "failure must not be rewarded" when it comes to severance packages.

By Tony Aynsley

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