Major European financiers are likely to react to the changing banking environment by capping the amount of cash they award to professionals as part of their bonuses.
That is according to a report by Reuters published today (3 January), which has indicated that lenders will look to tighten up their remuneration policies as they look to comply with stricter regulations and adapt to struggling market conditions.
For instance, officials in the banking industry told the news source that several companies are likely to follow the example of Barclays, which has decided to limit cash payouts for 2011 to a maximum of £65,000 ($105,000).
Lenders are likely to re-focus their bonus payments away from cash to a combination of assets and shares and the volume of such awards is also set to decline, with managers expecting them to fall by as much as 30 per cent between 2011 and 2012.
By Tony Aynsley